M/S BELGACOM INERNATIONAL CARRIER SERVIES SA vs. DEPUTY COMMISSIONER OF INCOME TAX

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WP/21960/2024HC KarnatakaKAHC01045180202423 July 2025Bench: SURAJ GOVINDARAJ5 pages
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What did the High Court hold?

The High Court allowed the writ petition. A writ of certiorari was issued, quashing the impugned final assessment order dated May 15, 2024, bearing reference No.AAJCB5259J/IT/C-2(2)/2024-25 (Annexure-A). Additionally, the impugned notices dated May 21, 2024, bearing No. ITBA/PNL/S/271(1)(c)/2024-25/1065040295(1) (Annexure-B) and No.ITBA/PNL/S/271F/2024-25/1065040151(1) (Annexure-B1), were also quashed. The court noted that both counsel submitted that the lis had been decided by a Division Bench of the High Court in the Vodafone Idea Ltd. case and that the relief granted therein would be applicable. The reasoning is based on the precedent set by the Division Bench. The operative direction is the quashing of the assessment order and the notices. No issue was expressly left undecided.

What were the facts?

The petitioner, M/s. BelgaCom International Carrier Services SA, a Belgian company, filed a writ petition before the High Court of Karnataka. The petition challenged the final assessment order dated May 15, 2024, passed by the Deputy Commissioner of Income Tax (International Taxation) Circle-2(2) under Section 147 read with Section 254, Section 143(3), and Section 144C of the Income Tax Act, 1961. The petitioner also challenged the related notice of demand and show-cause notices for penalty proceedings under Section 271(1)(c) and Section 271F of the Act for Assessment Year 2008-09. The respondents included the Deputy Commissioner of Income Tax, the Principal Chief Commissioner of Income Tax, and the Union of India.

What were the issues?

1. Whether the impugned final assessment order dated May 15, 2024, passed under Section 147 read with Section 254, Section 143(3), and Section 144C of the Income Tax Act, 1961, is liable to be quashed and cancelled? (Question of law and fact, turning on the validity of the assessment proceedings). 2. Whether the impugned notice of demand dated May 15, 2024, and the show-cause notices dated May 21, 2024, issued under Section 156, Section 274 read with Section 271(1)(c), and Section 274 read with Section 271F of the Income Tax Act, 1961, are liable to be quashed and cancelled? (Question of law and fact, turning on the validity of the consequential notices). Assessee's Contention: The petitioner argued that the issues in the present matter have been decided by a Division Bench of the High Court in the case of Vodafone Idea Ltd. v. Deputy Director of Income-Tax (International Taxation) reported in [2023] 152 taxmann.com 575, and the relief granted in that case would be applicable. The judgment does not record specific arguments from the revenue.

Which sections of the Income-tax Act were involved?

Section 147,Section 254,Section 143(3),Section 144C,Section 156,Section 274,Section 271(1)(c),Section 271F

AI-generated summary — verify with the full judgment below

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HC-KAR NC: 2025:KHC:28210 WP No. 21960 of 2024

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO.21960 OF 2024 (T-IT)

BETWEEN:

1.

M/S. BELGACOM INERNATIONAL CARRIER SERVIES SA BELGIUM BOULEVARD DU ROI ALBERT II, 27 B-1030, BRUSSELS, BELGIUM, (REPRESENTED BY SRIDATTHA CHARAN DIRECTOR). …PETITIONER

(BY SRI. RAVI RAGHAVAN, ADVOCATE) AND:

1.

DEPUTY COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) CIRCLE-2(2) ROOM NO.441, 4TH FLOOR, BMTC BUILDING, ,KORAMANGLA BENGALURU-560 095.

2.

PRINCIPLE CHIEF COMMISSIONER OF INCOME TAX C-3. DONA CYNTHIA, 35, PRIMROSE ROAD, BENGALURU-560 025.

3.

UNION OF INDIA THROUGH OF SECRETARY,

Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA

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HC-KAR NC: 2025:KHC:28210 WP No. 21960 of 2024

CENTRAL BOARD OF DIRECT TAXES MINISTRY OF FINANCE NORTH BLOCK, NEW DELHI-110 001. …RESPONDENTS

(BY SMT. K.S. ANUSUYADEVI, CGC FOR R.3; SRI E.I. SANMATHI, ADVOCATE FOR R.1 AND R.2.)

THE WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH AND CANCEL THE IMPUGNED FINAL ASSESSMENT ORDER F.NO.AAJCB5259J/IT/C-2(2)/2024-2025 DATED 15.05.2024 PASSED UNDER SECTION 147 READ WITH SECTION 254 READ WITH SECTION 143(3) READ WITH SECTION 144C OF THE ACT (ANNEXURE-A), ETC.

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

CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER

1.

The petitioner is before this Court seeking for the following reliefs:- "WHEREFORE, it is respectfully prayed that this Hon'ble Court may be pleased to issue a:

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HC-KAR NC: 2025:KHC:28210 WP No. 21960 of 2024

a. writ of certiorari or a writ in the nature of certiorari or any other appropriate writ, order or direction under Article 226 of the Constitution of India calling for the record of the case and after going through the same and examining the legality thereof, to quash and cancel the impugned final assessment order F.No. AAJCB5259J/IT/C-2(2)/2024-25 dated 15th 05 2024 passed u/s.147 r.w.s. 254 r.w.s. 143(3) r.w.s. 144C of the Act (Annexure-'A'), the notice of demand dated 15th 05 2024 issued u/s.156 of the Act (Annexure-'A'), the show-cause notice no. ITBA/PNL/S/ 271(1) (c)/2024- 25/1065040295(1) dated 21st May 2024 issued u/s. 274 r.w.s. 271(1)(c) of the Act (Annexure-'B'), the show-cause notice no. ITBA/PNL/S/271F /2024-25/1065040151(1) dated 21st 05 2024 issued u/s. 274 r.w.s. 271F of the Act (Annexure-'B1') passed / issued by Respondent No. 1, for the AY 2008- 09. b. Writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction under Article 226 of the Constitution of India ordering and directing the Respondents to withdraw/cancel the impugned final assessment order F.No.AAJCB5259J/IT/C- 2(2)/2024-25 dated 15th 05 2024 passed u/s. 147 r.w.s. 254 r.w.s. 143(3) r.w.s. 144C of the Act of the Act (Annexure-'A'), the notice of demand dated 15th May 2024 issued us. 156 of the Act (Annexure-'A'), the show-cause notice no.ITBA/PNL/S/271(1)(c) /2024-25/ 1065040295(1) dated 21st May 2024 issued u/s. 274 r.w.s. 271(1)(c) of the Act (Annexure-'B'), the show-cause notice no.ITBA/PNL/S/271F/2024-25 /1065040151(1) dated 21st May 2024 issued u/s. 274 r.w.s. 271F of the Act (Annexure-'B1')

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HC-KAR NC: 2025:KHC:28210 WP No. 21960 of 2024

passed / issued by Respondent No.1, for the AY 2008-09. c. Grant such other order or direction as deemed fit by this Hon'ble Court in the facts and circumstances of the case."

2.

Both the counsel submit that the lis in the present matter has been decided by the Division Bench of this Court in the case of Vodafone Idea Ltd., v. Deputy Director of Income-Tax (International Taxation) reported in [2023] 152 taxmann.com 575 and as such, they submit that the relief granted in that matter would be equally applicable to the petitioner in the present matter. 3. Hence I pass the following:- ORDER i. The writ petition is allowed. ii. A writ of certiorari is issued, the impugned order dated 15.05.2024 bearing reference No.AAJCB5259J/IT/C-2(2)/2024-25 at Annexure- A, the impugned notice dated 21.05.2024

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HC-KAR NC: 2025:KHC:28210 WP No. 21960 of 2024

bearing No. ITBA/PNL/S/271(1)(c)/2024- 25/1065040295(1) at Annexure-B and the impugned notice dated 21.05.2024 bearing No.ITBA/PNL/S/271F/2024-25/1065040151(1) at Annexure-B1, are quashed. iii. Pending interlocutory applications, if any, stand disposed of.

SD/- (SURAJ GOVINDARAJ) JUDGE

VMB List o.: 1 Sl No.: 32

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