ORANGE vs. THE DEPUTY COMMISSIONER OF INCOME TAX

WP/5338/2022HC KarnatakaKAHC01010891202223 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 submissions made on behalf of the petitioner, regarding the taxability of amounts received over the years and the prior decision of a Division Bench in ITA No.160/2015 and connected matters for AY 2010-11, remained undisputed. The Court found that this prior decision had settled the question of taxability, making it no longer res integra. Consequently, the High Court quashed the impugned notice dated 26.02.2021 initiating reassessment proceedings and the impugned order dated 29.12.2021 confirming the continuation of these proceedings for AY 2014-15. The ratio decidendi is that if a legal issue has been conclusively decided by a higher bench of the same court, reassessment proceedings based on that same issue are unsustainable.

What were the facts?

The petitioner, Orange, a French company, challenged a notice dated 26.02.2021 initiating reassessment proceedings for Assessment Year (AY) 2014-15, and an order dated 29.12.2021 by the Assessing Officer (AO) disposing of objections against the petitioner, thereby confirming the continuation of reassessment proceedings. The respondents are the Deputy Commissioner of Income Tax, the Commissioner of Income Tax (International Taxation), Vodafone Idea Limited (notice dispensed with), and the Central Board of Direct Taxes. The petitioner argued that the issue of taxability of amounts received by it over the years, specifically for AY 2010-11, was already decided by a Division Bench of the High Court in ITA No.160/2015 and connected matters, rendering the question no longer res integra.

What were the issues?

1. Whether the notice dated 26.02.2021 initiating reassessment proceedings for AY 2014-15 is liable to be quashed, and if so, on what grounds? 2. Whether the order dated 29.12.2021 passed by the Assessing Officer disposing of objections against the petitioner, confirming the continuation of reassessment proceedings for AY 2014-15, is liable to be quashed? Assessee's Contentions: The petitioner contended that the taxability of amounts received by it over the years, which formed the basis for the reassessment proceedings, had already been decided by a Division Bench of the High Court in ITA No.160/2015 and connected matters, specifically concerning AY 2010-11. Therefore, the issue was no longer res integra and the reassessment proceedings were unwarranted. Revenue's Contentions: The judgment does not record any specific contentions made by the revenue in opposition to the petitioner's arguments.

AI-generated summary — verify with the full judgment below

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NC: 2023:KHC:42251 WP No. 5338 of 2022

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. 5338 OF 2022 (T-IT) BETWEEN:

ORANGE 111 QUAI DU PRESIDENT ROOSEVELT 92130 ISSY-LES-MOULINEAUX FRANCE, REPRESENTED BY ITS AUTHORISED SIGNATORY MR. BENOIT DELAPLACE …PETITIONER

(BY SRI. HARPREET SINGH AJMANI & SRI YOGESHA B., 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, KORAMANGALA BENGALURU-560095.

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

VODAFONE IDEA LIMITED 10TH FLOOR BIRLA CENTURION CENTURION MILLS COMPOUND PANDURANG BUDKKAR MARG WORLI MUMBAI-400030 REPRESENTED BY ITS DIRECTORS

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

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NC: 2023:KHC:42251 WP No. 5338 of 2022

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 & 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: 26.02.2021 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: 29.12.2021 VIDE ANNX-H 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 PRELIMINARY 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 petitioners 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

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NC: 2023:KHC:42251 WP No. 5338 of 2022

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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