M/S. SINGAPORE TELECOMMUNICATIONS LIMITED vs. THE DEPUTY COMMISSIONER OF INCOME TAX

WP/15475/2021HC KarnatakaKAHC01031048202123 November 2023Bench: B M SHYAM PRASAD3 pages

AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. The Court noted that the petitioner's submission regarding the taxability of amounts received over the years, particularly for AY 2010-11, was pending consideration before the Court in other writ petitions. These earlier petitions were disposed of by holding that the question was no longer res integra in view of a Division Bench decision in ITA No.160/2015 and connected matters. The Court found that these submissions remained undisputed by the revenue. Consequently, the Court quashed the impugned notice dated March 28, 2019, initiating reassessment proceedings for AY 2012-13, and the impugned order dated July 12, 2021, confirming the continuation of these proceedings. The ratio decidendi is that if a taxability issue has been settled by a higher court's decision and this fact is not disputed, reassessment proceedings based on that unsettled issue should be quashed.

What were the facts?

The petitioner, M/s. Singapore Telecommunications Limited, Singapore, filed a writ petition challenging a notice dated March 28, 2019, issued by the Assessing Officer initiating reassessment proceedings for Assessment Year (AY) 2012-13. The petitioner also sought to quash an order dated July 12, 2021, passed by the Assessing Officer disposing of objections against the petitioner, which confirmed the continuation of these reassessment proceedings. The respondents include the Deputy Commissioner of Income Tax, the Commissioner of Income Tax, Vodafone Idea Limited (notice dispensed with), and the Central Board of Direct Taxes. The core of the dispute revolves around the taxability of amounts received by the petitioner over several years.

What were the issues?

1. Whether the notice dated March 28, 2019, initiating reassessment proceedings for AY 2012-13 against the petitioner is valid and legally sustainable? (Question of law) 2. Whether the order dated July 12, 2021, disposing of objections and confirming the continuation of reassessment proceedings for AY 2012-13 is valid? (Question of law) Assessee's Contention: The petitioner argued that the taxability of amounts received by it over the years, specifically for AY 2010-11, was a matter that had been considered by the High Court in other writ petitions (W.P.No.51999/2019 and W.P.No.53137/2008). These earlier petitions were disposed of based on a Division Bench decision in ITA No.160/2015 and connected matters, establishing that the issue was no longer res integra. The petitioner implied that this precedent should also apply to AY 2012-13. Revenue's Contention: The judgment does not record any specific arguments made by the revenue.

AI-generated summary — verify with the full judgment below

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NC: 2023:KHC:42251 WP No. 15475 of 2021

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF NOVEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 15475 OF 2021 (T-IT) BETWEEN:

M/S. SINGAPORE TELECOMMUNICATIONS LIMITED, SINGAPORE 31 EXETER ROAD, COMCENTRE SINGAPORE-239732 SINGAPORE, REP BY ITS AUTHORISED ISGNATORY MR.KOH BOON CHYE …PETITIONER (BY SRI. HARPREET SINGH AJMANI & SRI YOGESHA B., ADVOCATES)

AND:

THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, CIRCLE 2(2), ROOM NO.430, 4TH FLOOR, BMTC BUILDING, 80 FT ROAD, 6TH BLOCK, KORMANGALA, BENGALURU – 560 095.

THE COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION ROOM NO.741 7TH FLOOR BMTC BUILDING ,80 FT ROAD 6TH 10 BLOCK, KORMANGALA BENGALURU-560 095

VODAFONE IDEA LIMITED 10TH FLOOR BIRLA CENTURION CENTURION MILLS COMPOUND

Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA

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NC: 2023:KHC:42251 WP No. 15475 of 2021

PANDURANG BUDKKAR MARG WORLI, MUMBAI-400030 REPRESENTED BY ITS DIRECTOR

THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE NORTH BLOCK, CENTRAL SECRETARIAT, NEW DELHI 110001 REPRESENTED BY ITS CHAIRMAN …RESPONDENTS

(BY SRI. M.DILIP ADVOCATE FOR R1, R2 AND R4; NOTICE TO R3 IS DISPENSED WITH)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 28.03.2019 (IMPUGNED NOTICE, MARKED AS ANNEXURE-A) ISSUED BY THE ASSESSING OFFICER INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR A.Y.2012-13 AND TO QUASH THE ORDER DATED 12.07.2021 MARKED AS ANNEXURE-J PASSED BY THE ASSESSING OFFICER DISPOSING OFF OBJECTIONS AGAINST THE PETITIONER THEREBY CONFIRMING CONTINUATION OF REASSESSMENT PROCEEDINGS FOR A.Y.2012-13 AND ETC.

THIS PETITION COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

It is submitted on behalf of the learned counsel for the petitioner that the question for consideration would be the taxability of the amounts received by petitioner over a period of years. This question insofar as the assessment year 2010-11 was pending

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NC: 2023:KHC:42251 WP No. 15475 of 2021

consideration before this Court in W.P.No.51999/2019 and W.P.No.53137/2008, and these writ petitions are disposed of holding that such question is no longer res integra in view of the decision of a Division Bench in ITA No.160/2015 and connected matters.

The submissions remain undisputed, and therefore the petition is allowed quashing the notice impugned and the impugned proceeding in this petition.

SD/- JUDGE

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