ABB ASEA BROWN BOVERI LTD., vs. THE DEPUTY COMMISSIONER OF INCOME TAX

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WP/10833/2022HC KarnatakaKAHC01024223202224 June 2026Bench: B M SHYAM PRASAD3 pages
AI SummaryWithdrawn

What did the High Court hold?

The learned counsel for the petitioner sought leave to withdraw the petition. The memo filed by the petitioner was placed on record. Consequently, the High Court dismissed the writ petition as withdrawn. No decision was made on the merits of the issues raised by the petitioner. The operative direction was to dismiss the petition as withdrawn.

What were the facts?

The petitioner, ABB ASEA BROWN BOVERI LTD., a Swiss entity, filed a writ petition before the High Court of Karnataka. The petition challenged a certificate dated 18.05.2022 issued by the Deputy Commissioner of Income Tax (R1) under Section 197 of the Income Tax Act, 1961, for the period 18.05.2022 to 31.03.2023. It also challenged a circular dated 03.02.2022 bearing No. 3/2022 issued by the Central Board of Direct Taxes (R3). The petitioner sought a declaration that tax on dividends to be paid by ABB India Ltd. should be deducted at 5 percent, in accordance with the Double Taxation Avoidance Agreement (DTAA). The respondents included the Deputy Commissioner of Income Tax, the Commissioner of Income Tax, and the Central Board of Direct Taxes.

What were the issues?

1. Whether the certificate dated 18.05.2022 issued by the Deputy Commissioner of Income Tax under Section 197 of the Income Tax Act, 1961, for the period 18.05.2022 to 31.03.2023, is liable to be quashed? 2. Whether the circular dated 03.02.2022 bearing No. 3/2022 issued by the Central Board of Direct Taxes is liable to be quashed? 3. Whether dividends to be paid to the petitioner by ABB India Ltd. are taxable at the rate of 5 percent in accordance with the DTAA? The petitioner argued that tax on dividends should be deducted at 5 percent as per the DTAA. The judgment does not record any specific arguments from the revenue side regarding these issues.

Which sections of the Income-tax Act were involved?

Section 197

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2026:KHC:31617 WP No. 10833 of 2022

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 10833 OF 2022 (T-IT)

BETWEEN:

ABB ASEA BROWN BOVERI LTD., AFFOLTEMSTRASSE 44, P.O. BOX 8131, CH-8050 ZURICH SWITZERLAND, REPRESENTED HEREIN BY ITS AUTHORIZED SIGNATORY, MR. JAYANTA KUMAR CHATTERJEE.

…PETITIONER (BY MS. TANMAYEE RAJKUMAR.,ADVOCATE) AND:

1.

THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, CIRCLE-1, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BANGALORE-560 095.

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

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HC-KAR NC: 2026:KHC:31617 WP No. 10833 of 2022

2.

THE COMMISSIONER OF INCOME-TAX INTERNATIONAL TAXATION, BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, 80 FEET ROAD, BANGALORE-560 095.

3.

CENTRAL BOARD OF DIRECT TAXES NORTH BLOCK, CENTRAL SECRETARIAT, NEW DELHI, DELHI-110 001, REPRESENTED BY THE SECRETARY, TAX POLICY AND LEGISLATION DIVISION.

…RESPONDENTS (BY SRI. SANMATHI E I.,ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE CERTIFICATE DATED 18.05.2022 ISSUED BY THE R1 UNDER SECTION 197 OF THE ACT (ANNEXURE-D) FOR THE PERIOD 18.05.2022 TO 31.03.2023; QUASHING THE CIRCULAR DATED 03.02.2022 BEARING NO.3/2022 ISSUED BY THE R3 ,ANNEXURE-B; DECLARING THAT ON THE DIVIDENDS TO BE PAID TO THE PETITIONER BY ABB INDIA LTD.TAX AT THE RATE OF 5 PERCENT IS TO BE DEDUCTED IN ACCORDANCE WITH THE DTAA.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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HC-KAR NC: 2026:KHC:31617 WP No. 10833 of 2022

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The learned counsel for the petitioner files a memo seeking leave to withdraw the petition. The memo is placed on record and the petition is dismissed as withdrawn.

SD/- (B M SHYAM PRASAD) JUDGE

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