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

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WP/17270/2021HC KarnatakaKAHC01035036202123 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, as it pertained to AY 2010-11, was pending before the Court in other writ petitions. These earlier petitions were disposed of by holding that the question was no longer res integra, in light of a Division Bench decision in ITA No.160/2015 and connected matters. The Court found these submissions to be undisputed. Consequently, the Court quashed the impugned notice initiating reassessment proceedings and the subsequent order confirming the continuation of these proceedings for AY 2016-17. The ratio decidendi is that if a taxability issue for a prior period has been settled by a higher judicial authority and is not res integra, then initiating reassessment proceedings for a subsequent year on the same issue, without new material, may be unsustainable. The operative direction was to quash the notice and proceedings.

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 31, 2021, issued by the Deputy Commissioner of Income Tax (Assessing Officer) initiating reassessment proceedings for Assessment Year (AY) 2016-17. The petitioner also sought to quash an order dated July 12, 2021, passed by the Assessing Officer disposing of objections against the petitioner, thereby confirming the continuation of reassessment proceedings. The Assessing Officer and the Commissioner of Income Tax (International Taxation) were the respondents, along with Vodafone Idea Limited and the Central Board of Direct Taxes. The notice to Vodafone Idea Limited was discharged. The core of the dispute pertains to the taxability of amounts received by the petitioner over several years.

What were the issues?

1. Whether the notice dated March 31, 2021, initiating reassessment proceedings for AY 2016-17 against the petitioner is valid and legally sustainable? (Question of law and fact, concerning Section 147/148 of the Income Tax Act, 1961). 2. Whether the order dated July 12, 2021, disposing of objections and confirming the continuation of reassessment proceedings for AY 2016-17 is valid? (Question of law and fact, concerning the procedural fairness and legality of reassessment proceedings). 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 pending before the High Court in other writ petitions. These petitions were disposed of based on a Division Bench decision in ITA No.160/2015 and connected matters, implying the issue was no longer res integra. The petitioner implicitly contended that the reassessment proceedings for AY 2016-17 were therefore unwarranted or premature. Revenue's Contention: The judgment records no specific arguments from the revenue.

Which sections of the Income-tax Act were involved?

Section 147,Section 148

AI-generated summary — verify with the full judgment below

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NC: 2023:KHC:42251 WP No. 17270 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. 17270 OF 2021 (T-IT) BETWEEN:

M/S. SINGAPORE TELECOMMUNICATIONS LIMITED SINGAPORE 31 EXETER ROAD, COMCENTRE SINGAPORE -239732 SINGAPORE REPRESENTED BY ITS AUTHORISED SIGNATORY MR KOH BOON CHYE …PETITIONER (BY SRI. HARPREET SINGH AJMANI AND SRI. YOGESHA B. POOJARI, ADVOCATE)

AND:

1.

DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE -2 (2) ROOM NO.430 4TH FLOOR BMTC BUILDING 80 FT ROAD 6TH BLOCK KORAMANGALA, BENGALURU-560095

2.

THE COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION RANGE-2 ROOM NO.741, 7TH FLOOR BMTC BUILDING 80 FT ROAD 6TH BLOCK KORAMANGALA BENGALURU-560095

3.

VODAFONE IDEA LIMITED 10TH FLOOR BIRLA CENTURION

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

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NC: 2023:KHC:42251 WP No. 17270 of 2021

CENTURION MILLS COMPOUND PANDURANG BUDKKAR MARG WORLI, MUMBAI-400030 REPRESENTED BY ITS DIRECTORS

4.

THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE NORTH BLOCK CENTRAL SECRETARIAT NEW DELHI-110001 REPRESENTED BY ITS CHAIRMAN …RESPONDENTS (BY SRI. DILIP M., ADVOCATE FOR R1, R2 AND R4; NOTICE TO R3 IS D/W)

THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DTD.31.3.2021 IMPUGNED NOTICE MARKED AS ANNEXURE-A ISSUED BY THE ASSESSING OFFICER INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2016-17; 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 2016-17.

THIS PETITION, COMING ON FOR FINAL HEARING, 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

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NC: 2023:KHC:42251 WP No. 17270 of 2021

as the assessment year 2010-11 was pending 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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