THE COMMISSIONER OF INCOME TAX vs. M/S BELGACOM INTERNATIONAL CARRIER

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ITA/9/2024HC KarnatakaKAHC01000419202408 January 2025Bench: KRISHNA S DIXIT,G BASAVARAJA4 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court noted that the learned counsel for both sides submitted that the subject matter of these appeals is substantially similar to the case of VODAFONE IDEA LTD. vs. DEPUTY DIRECTOR OF INCOME-TAX, (INTERNATIONAL TAXATION), [2023] 152 taxmann.com 575 (Karnataka), which was disposed of by a Coordinate Bench of the Court on July 14, 2023. Based on this submission, the Court ordered that the relief granted to the assessee in the VODAFONE IDEA LTD. case should be extended to the respondent assessee in the present appeals. Consequently, the appeals were disposed of with costs made easy. The specific findings on the substantial questions of law or the merits of the dispute are not detailed as the decision was based on parity with a previous judgment.

What were the facts?

These are two Income Tax Appeals filed by the Commissioner of Income Tax, International Taxation, and the Deputy Commissioner of Income Tax, International Taxation Circle-2(2), Bengaluru, against M/s Belgacom International Carrier Services SA. The appeals challenge orders passed by the Income Tax Appellate Tribunal (ITAT), Bengaluru, for Assessment Year 2014-2015 (ITA No. 9 of 2024) and Assessment Year 2015-2016 (ITA No. 5 of 2024). The ITAT orders were dated August 29, 2023. The Revenue sought to set aside the ITAT orders and confirm the orders of the Dispute Resolution Panel (DRP) and the Assessing Officer. The respondent assessee is a Belgian company. The appeals are filed under Section 260-A of the Income Tax Act, 1961.

What were the issues?

1. Whether the substantial questions of law framed in the appeals warrant consideration by the High Court. (Question of law) 2. Whether the orders passed by the ITAT for AY 2014-15 and AY 2015-16, which are stated to be substantially similar to a previous case, should be set aside. (Mixed question of law and fact) Assessee's Contention: The learned counsel for both sides submitted that the subject matter of these appeals is substantially similar to the case of VODAFONE IDEA LTD. vs. DEPUTY DIRECTOR OF INCOME-TAX, (INTERNATIONAL TAXATION), [2023] 152 taxmann.com 575 (Karnataka), which was disposed of by a Coordinate Bench of the High Court on July 14, 2023. They argued that the relief granted to the assessee in that case should be extended to the respondent assessee in the present appeals. Revenue's Contention: The judgment does not record specific contentions for the revenue beyond their prayer to set aside the ITAT orders and confirm the lower authorities' orders.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

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NC: 2025:KHC:431-DB ITA No. 9 of 2024 C/W ITA No. 5 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JANUARY, 2025 PRESENT THE HON'BLE MR JUSTICE KRISHNA S DIXIT AND THE HON'BLE MR JUSTICE G BASAVARAJA INCOME TAX APPEAL NO. 9 OF 2024 C/W INCOME TAX APPEAL NO. 5 OF 2024

IN ITA No. 9/2024:

BETWEEN:

1.

THE COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, 4TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 560 095.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE-2(2) 4TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 560 095. …APPELLANTS (BY SRI. Y V RAVIRAJ., ADVOCATE AND SRI. DILIP M.,ADVOCATE)

AND:

M/S BELGACOM INTERNATIONAL CARRIER SERVICES SA, BOULEVARD DU ROI ALTER II, 27, 1030 BRUSSELS, BELGUIM - 271 030. PAN: AAJCB5259J …RESPONDENT (BY SRI. RAVI RAGHAVAN.,ADVOCATE AND MS. NEHA SHARMA., ADVOCATE)

Digitally signed by SHARADA VANI B Location: HIGH COURT OF KARNATAKA

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NC: 2025:KHC:431-DB ITA No. 9 of 2024 C/W ITA No. 5 of 2024

THIS ITA / INCOME TAX APPEAL UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 29/08/2023 PASSED IN IT(IT)A No.197/BANG/2023, FOR THE ASSESSMENT YEAR 2014-2015 PRAYING TO 1) FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND 2) ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME-TAX APPELLATE TRIBUNAL, BENGALURU IN IT(IT)A NO. 197/BANG/2023 DATED 29.08.2023 FOR ASSESSMENT YEAR 2014-2015 ANNEXURE A AND CONFIRM THE ORDER OF the DRP CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE -2(2), BENGALURU AND ETC.,

IN ITA NO. 5/2024:

BETWEEN:

1.

THE COMMISSIONER OF INCOME-TAX INTERNATIONAL TAXATION, 4TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 560 095.

2.

THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE-2(2), 4TH FLOOR, BMTC BUILDING, 80 FEET ROAD, KORMANGALA, BENGALURU 560 095. ...APPELLANTS (BY SRI. Y V RAVIRAJ., ADVOCATE AND SRI. DILIP M.,ADVOCATE)

AND:

1.

M/S BELGACOM INTERNATIONAL CARRIER SERVICES SA, BOULEVARD DU ROI ALTER II, 27, 1030 BRUSSELS, BELGUIM - 271 030. PAN: AAJCB5259J ...RESPONDENT (BY MS.NEHA SHARMA.,ADVOCATE)

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NC: 2025:KHC:431-DB ITA No. 9 of 2024 C/W ITA No. 5 of 2024

THIS ITA / INCOME TAX APPEAL UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED 29/08/2023 PASSED IN IT(IT)A NO.198/BANG/2023, FOR THE ASSESSMENT YEAR 2015-2016, PRAYING TO I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND II. ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE INCOME TAX APPELLATE TRIBUNAL, BENGALURU IN IT(IT)A NO. 198/BANG/2023 DATED 29/08/2023 FOR ASSESSMENT YEAR 2015-2016 ANNEXURE-A AND CONFIRM THE ORDER OF THE DRP CONFIRMING THE ORDER PASSED BY THE DEPUTY COMMISSIONER OF INCOME TAX, INTERNATIONAL TAXATION, CIRCLE-2(2), BENGALURU AND ETC.,

THESE INCOME TAX APPEALS COMING ON FOR ORDERS THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR JUSTICE KRISHNA S DIXIT and HON'BLE MR JUSTICE G BASAVARAJA

ORAL JUDGEMENT

(PER: HON'BLE MR JUSTICE KRISHNA S DIXIT)

Learned counsel appearing for both the sides in all fairness submit that the subject matter of these cases is substantially similar to the one in VODAFONE IDEA LTD., vs. DEPUTY DIRECTOR OF INCOME-TAX, (INTERNATIONAL TAXATION), [2023] 152 taxmann.com 575 (Karnataka) disposed off by a Coordinate Bench of this Court vide order dated 14.07.2023 and therefore, the relief granted to the

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NC: 2025:KHC:431-DB ITA No. 9 of 2024 C/W ITA No. 5 of 2024

Appellant – Assessee therein needs to be extended to the similarly circumstanced Respondent-Assessee in these Appeals too.

Ordered accordingly and the Appeals are disposed off, costs having been made easy.

Sd/- (KRISHNA S DIXIT) JUDGE

Sd/- (G BASAVARAJA) JUDGE Bsv List No.: 1 Sl No.: 12

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