M/S BELAGACOM INTERNATIONAL CARRIER SERIVERS SA vs. DEPUTY COMMISSIONER OF INCOME TAX

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WP/22187/2024HC KarnatakaKAHC01045181202423 July 2025Bench: SURAJ GOVINDARAJ5 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. It issued a writ of certiorari, quashing the impugned final assessment order dated May 15, 2024, the show-cause notice dated May 21, 2024, issued under Section 274 read with Section 271F, and the other show-cause notice dated May 21, 2024, issued under Section 274 read with Section 271(1)(c). The Court's decision was based on the submission by both parties that the lis had been decided by a Division Bench of the same court in Vodafone Idea Ltd. v. Deputy Director of Income-Tax (International Taxation) [2023] 152 taxmann.com 575, and the relief granted in that case was equally applicable to the present petitioner. The operative direction was to quash the specified orders and notices. No issues were expressly left undecided.

What were the facts?

The petitioner, M/s. Belagacom International Carrier Servers SA, a Belgian company, filed a writ petition before the High Court of Karnataka. The petition challenged a final assessment order dated May 15, 2024, passed under Section 147 read with Section 144, Section 254, and Section 144C(1) of the Income Tax Act, 1961. Also challenged were a notice of demand dated May 15, 2024, issued under Section 156, and two show-cause notices dated May 21, 2024, issued under Section 274 read with Section 271(1)(c) and Section 271F of the Act. These orders and notices were issued by the Deputy Commissioner of Income Tax (International Taxation), Circle-2(2), for Assessment Year 2012-13.

What were the issues?

1. Whether the impugned final assessment order, notice of demand, and show-cause notices issued by the Deputy Commissioner of Income Tax are liable to be quashed and cancelled under Article 226 of the Constitution of India, in light of the facts and circumstances of the case? Assessee's Contention: The petitioner sought to quash the impugned orders and notices. Both counsel for the petitioner and the respondents submitted that the dispute in the present matter has already 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 that the relief granted in that case would be applicable to the petitioner. Revenue's Contention: The revenue did not present any distinct arguments against the petitioner's claim, as both parties agreed that the matter was covered by the precedent set in the Vodafone Idea Ltd. case.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 254,Section 144C(1),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:28364 WP No. 22187 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.22187 OF 2024 (T-IT)

BETWEEN:

1.

M/S. BELAGACOM INTERNATIONAL CARRIER SERIVERS 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, KORAMANGALA, BENGALURU-560 095.

2.

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

Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA

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HC-KAR NC: 2025:KHC:28364 WP No. 22187 of 2024

3.

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

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

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH AND CANCEL THE IMPUGNED FINAL ASSESSMENT ORDER NO. AAJCB5259J/IT/C-2(2)/2024-25 DATED 15.05.2024 PASSED UNDER SECTION 147 R.W.S. 144 R.W.S. 254 R.W.S. 144C(1) OF THE ACT (ANNEXURE-'A'), THE NOTICE OF DEMAND DATED 15TH MAY 2024 ISSUED UNDER SECTION 156 OF THE ACT (ANNEXURE-'A'), THE SHOW-CAUSE NOTICE NO.ITBA/PNLS/271F/2024-25/1065042099 (1) DATED 21ST MAY 2024 ISSUED UNDER SECTION 274 R.W.S. 271(1)(C) OF THE ACT (ANNEXURE-'B'), THE SHOW-CAUSE NOTICE NO.ITBA/PNL/S/271(1)(C)2024-25/1065042177(1) DATED 21ST MAY 2024 ISSUED UNDER SECTION 274 R.W.S. 271F OF THE ACT (ANNEXURE-'B1') PASSED/ISSUED BY RESPONDENT NO. 1, FOR THE AY 2012-13, ETC.

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

CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

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HC-KAR NC: 2025:KHC:28364 WP No. 22187 of 2024

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:

a. writ of certiorari or a writ in the nature of certiorari or any of the 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 No. AAJCB5259J/IT/C-2(2)/ 2024-25 dated 15.05.2024 passed u/s. 147 r.w.s. 144 r.w.s. 254 r.w.s. 144C(1) of the Act (Annexure-'A'), the notice of demand dated 15th May 2024 issued u/s. 156 of the Act (Annexure-'A'), the show-cause notice no ITBA/PNLS/271F/2024-25/1065042099(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/271(1)(c)2024-25/1065042177(1) dated 21st May 2024 issued u/s.274 r.w.s. 271F of the Act (Annexure-'B1') passed / issued by Respondent No.1, for the AY 2012-13. 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 No.AAJCB5259J/IT/C-2(2) / 2024-25 dated 15th May 2024 passed u/s.147 r.w.s. 144 r.w.s. 254 r.w.s. 144C(1) of the Act (Annexure-'A'), the notice of demand dated 15th May 2024 issued u/s. 156 of the Act (Annexure-'A'), the show-cause notice no.

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HC-KAR NC: 2025:KHC:28364 WP No. 22187 of 2024

ITBA/PNLS/271F/2024-25/1065042099(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/271(1)(c)2024-25/1065042177(1) dated 21st May 2024 issued u/s. 274 r.w.s. 271F of the Act (Anneexure-'B1') passed / issued by Respondent No.1, for the AY 2012-13." 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.

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HC-KAR NC: 2025:KHC:28364 WP No. 22187 of 2024

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 bearing No. ITBA/PNL/S/271F/2024-25/1065042099(1) at Annexure-B and the impugned notice dated 21.05.2024 bearing No.ITBA/PNL/S/271(1)(c)/ 2024- 25/1065042177(1) at Annexure-B1, are quashed. iii. Pending interlocutory applications, if any, stand disposed of.

SD/- (SURAJ GOVINDARAJ) JUDGE

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