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

WP/17301/2021HC KarnatakaKAHC01035034202123 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 submissions made on behalf of the petitioner remained undisputed. The petitioner had argued that the taxability of amounts received over the years, which was the subject of the reassessment proceedings for AY 2014-15, had already been considered for AY 2010-11 in earlier writ petitions. 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. Since the revenue did not dispute this submission, the Court found no impediment to quashing the impugned notice and the consequent proceedings. The operative direction was to quash the notice dated March 16, 2021, and the order dated July 12, 2021, thereby stopping the reassessment proceedings for AY 2014-15.

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, issued by the Deputy Commissioner of Income Tax (Assessing Officer) initiating reassessment proceedings for Assessment Year (AY) 2014-15. The petitioner also challenged an order dated July 12, 2021, passed by the Assessing Officer, which disposed of objections against the petitioner and confirmed the continuation of reassessment proceedings for AY 2014-15. The revenue authorities, including the Deputy Commissioner and the Commissioner of Income Tax, were respondents, along with Vodafone Idea Limited and the Central Board of Direct Taxes. The petitioner sought to quash both the notice and the order.

What were the issues?

1. Whether the notice dated March 16, 2021, initiating reassessment proceedings for AY 2014-15 against the petitioner is valid and legally sustainable? (Question of law and fact, concerning the initiation of reassessment proceedings). 2. Whether the order dated July 12, 2021, disposing of objections and confirming the continuation of reassessment proceedings for AY 2014-15 is valid? (Question of law and fact, concerning the disposal of objections). Assessee's Contention: The petitioner argued that the taxability of amounts received over the years, specifically for AY 2010-11, was a matter previously pending before the High Court in W.P.No.51999/2019 and W.P.No.53137/2008. These earlier writ 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 this precedent should also apply to AY 2014-15, rendering the reassessment proceedings for the current year unsustainable. 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. 17301 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. 17301 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., ADVOCATES)

AND:

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

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

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. 17301 of 2021

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

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 & R4; NOTICE TO R3 IS DISPENSED WITH)

THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DTD: 16.03.2021 (IMPUGNED NOTICE VIDE ANNX-A) ISSUED BY THE ASSESSING OFFICER INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2014-15 AND TO QUASH THE ORDER DTD: 12.07.2021 VIDE ANNX-K PASSED BY THE ASSESSING OFFICER DISPOSING OFF OBJECTIONS AGAINST THE PETITIONER THEREBY CONFIRMING CONTINUATION OF REASSESSMENT PROCEEDINGS FOR AY 2014-15.

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. 17301 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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