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

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WP/17323/2021HC KarnatakaKAHC01035037202123 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 by the petitioner's counsel were undisputed. The petitioner had argued that the question of taxability of amounts received by it was no longer res integra, citing a Division Bench decision in ITA No.160/2015 and connected matters, which had been applied to dispose of similar issues for AY 2010-11 in earlier writ petitions before the same court. Since the revenue did not dispute this submission, the Court found no reason to continue the reassessment proceedings. Consequently, the impugned notice dated March 31, 2021, initiating reassessment proceedings for AY 2017-18, and the subsequent order dated July 12, 2021, confirming the continuation of these proceedings, were quashed. The ratio decidendi is that if a taxability issue has been settled by a higher judicial pronouncement and applied to the assessee for other assessment years, initiating fresh reassessment proceedings on the same settled issue without any new material would be unsustainable.

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, initiating reassessment proceedings for Assessment Year (AY) 2017-18. 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 2017-18. The core issue revolved around the taxability of amounts received by the petitioner over several years. The petitioner pointed out that a similar issue concerning AY 2010-11 was pending before the same court in other 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 taxability question was no longer res integra.

What were the issues?

1. Whether the notice dated March 31, 2021, initiating reassessment proceedings for AY 2017-18 against the petitioner, M/s. Singapore Telecommunications Limited, is valid and should be quashed? (Question of law turning on Section 147/148 of the Income Tax Act, 1961). 2. Whether the order dated July 12, 2021, passed by the Assessing Officer, confirming the continuation of reassessment proceedings for AY 2017-18, is sustainable and should be quashed? (Question of law turning on principles of natural justice and Section 147/148 of the Income Tax Act, 1961). Assessee's Contentions: The petitioner argued that the taxability of amounts received by it over the years was the central issue. It highlighted that the same question for AY 2010-11 was already addressed by the High Court in W.P.No.51999/2019 and W.P.No.53137/2008, which were disposed of based on a Division Bench ruling in ITA No.160/2015 and connected matters. This precedent rendered the issue no longer res integra, implying the reassessment proceedings were unwarranted. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue (respondents 1, 2, and 4) in opposition to the petitioner's arguments.

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. 17323 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. 17323 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. HARPEET SINGH AJMANI AND SRI. YOGESHA B., ADVOCATES)

AND:

1.

DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE -2 (2) ROOM NO.R30 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. 17323 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

2017-18; 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 2017-18.

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

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NC: 2023:KHC:42251 WP No. 17323 of 2021

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 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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