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

WP/17266/2021HC KarnatakaKAHC01035032202123 November 2023Bench: B M SHYAM PRASAD3 pages

AI SummaryAllowed

What did the High Court hold?

The High Court of Karnataka allowed the writ petition. The Court noted that the question for consideration was the taxability of amounts received by the petitioner over a period of years. It was submitted on behalf of the petitioner that this very question, concerning AY 2010-11, was pending before the Court in W.P.No.51999/2019 and W.P.No.53137/2008. These earlier writ 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 submissions made by the petitioner remained undisputed. Consequently, the Court quashed the impugned notice initiating reassessment proceedings and the impugned order confirming the continuation of these proceedings for AY 2013-14. The ratio decidendi is that if a taxability issue has been settled by a higher court for a prior period, reassessment proceedings for a subsequent period on the same issue may be quashed if the submissions remain undisputed.

What were the facts?

The petitioner, M/s. Singapore Telecommunications Limited, filed a writ petition before the High Court of Karnataka challenging a notice dated March 16, 2021, initiating reassessment proceedings for Assessment Year (AY) 2013-14. The petitioner also sought to quash an order dated July 12, 2021, passed by the Assessing Officer, which disposed of objections against the petitioner and confirmed the continuation of these reassessment proceedings. The respondents were 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 revolved around the taxability of amounts received by the petitioner over several years.

What were the issues?

1. Whether the notice dated March 16, 2021, initiating reassessment proceedings for AY 2013-14 against the petitioner, M/s. Singapore Telecommunications Limited, is legally sustainable? (Question of law and fact, concerning the validity of reassessment proceedings). 2. Whether the order dated July 12, 2021, passed by the Assessing Officer, confirming the continuation of reassessment proceedings for AY 2013-14, is valid? Assessee's Contention: The petitioner argued that the question of taxability of amounts received by it over the years, specifically for AY 2010-11, was already pending before the High Court in other writ petitions (W.P.No.51999/2019 and W.P.No.53137/2008). These petitions were disposed of based on a Division Bench decision in ITA No.160/2015 and connected matters, indicating the issue was no longer res integra. Revenue's Contention: The judgment records no specific arguments from the revenue.

AI-generated summary — verify with the full judgment below

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NC: 2023:KHC:42251 WP No. 17266 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. 17266 OF 2021 (T-IT)

BETWEEN:

M/S. SINGAPORE TELECOMMUNICATIONS LIMITED SINGAPORE 31 EXETER ROAD COMCENTRE SINGAPORE - 239 732 SINGAPORE REPRESENTED BY ITS AUTHORISED SIGNATORY MR KOH BOON CHYE …PETITIONER (BY SRI. HARPREET SINGH AJMANI & SRI YOGESHA B. POOJARI 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 PANDURANG BUDKKAR MARG WORLI MUMBAI-400030 REPRESENTED BY ITS DIRECTOR

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

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NC: 2023:KHC:42251 WP No. 17266 of 2021

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 DTD.16.3.2021 IMPUGNED NOTICE MARKED AS ANNEXURE-A ISSUED BY THE ASSESSING OFFICER INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2013-14 QUASH THE ORDER DTD.12.7.2021 (MARKED AS ANNEXURE-K) PASSED BY THE ASSESSING OFFICER DISPOSING OFF OBJECTIONS AGAINST THE PETITIONER THEREBY CONFIRMING CONTINUATION OF REASSESSMENT PROCEEDINGS FOR AY 2013-14.

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 consideration before this Court in

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NC: 2023:KHC:42251 WP No. 17266 of 2021

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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