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

WP/17325/2021HC KarnatakaKAHC01035035202123 November 2023Bench: B M SHYAM PRASAD3 pages

AI SummaryAllowed

What did the High Court hold?

The High Court allowed the writ petition. It noted the submission made on behalf of the petitioner that the question for consideration regarding the taxability of amounts received by the petitioner over the years, for AY 2010-11, was pending before the Court in other writ petitions. These petitions were disposed of by holding that the issue was no longer res integra due to a Division Bench decision in ITA No.160/2015 and connected matters. Since these submissions remained undisputed by the revenue, the Court found no reason to permit the continuation of reassessment proceedings. The Court quashed the impugned notice and the impugned proceedings. The ratio decidendi is that if a taxability issue for a prior assessment year has been settled by a binding precedent, reassessment proceedings for a subsequent year on the same issue may be quashed without a detailed examination of the merits of the reassessment notice, especially when the revenue does not dispute the applicability of the precedent.

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 28, 2021, issued by the Deputy Commissioner of Income Tax (International Taxation Circle - 2) initiating reassessment proceedings for Assessment Year (AY) 2015-16. 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 these reassessment proceedings. The respondents included the Deputy Commissioner of Income Tax, the Commissioner of Income Tax (International Taxation Range - 2), Vodafone Idea Limited, and the Central Board of Direct Taxes.

What were the issues?

1. Whether the notice dated March 28, 2021, initiating reassessment proceedings for AY 2015-16 against the petitioner is liable to be quashed? (Question of law) 2. Whether the order dated July 12, 2021, confirming the continuation of reassessment proceedings for AY 2015-16 against the petitioner is liable to be quashed? (Question of law) Assessee's Contention: The petitioner argued that the question of taxability of amounts received by the petitioner over a period of years, specifically for AY 2010-11, was pending before the High Court in other writ petitions (W.P.No.51999/2019 and W.P.No.53137/2008). These earlier petitions were disposed of by holding that the issue was no longer res integra in view of a Division Bench decision in ITA No.160/2015 and connected matters. The petitioner implied that this precedent would also apply to AY 2015-16. 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. 17325 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. 17325 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:

DEPUTY COMMISSIONER OF INCOME TAX NTERNATIONAL 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

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

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NC: 2023:KHC:42251 WP No. 17325 of 2021

VODAFONE IDEA LIMITED 10TH FLOOR BIRLA CENTURION 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 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.28.3.2021 IMPUGNED NOTICE MARKED AS ANNEXURE-A ISSUED BY THE ASSESSING OFFICER INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2015-16; 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 2015-16.

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

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NC: 2023:KHC:42251 WP No. 17325 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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