COMMISSIONER OF INCOME TAX TDS 2 CHANDIGARH vs. M/S VODAFONE IDEA LIMITED EARLIER KNOWN AS VODAFONE MOBILE SERVICES LIMITED

106

AT CHANDIGARH

ITA-42-2021 (O&M) Date of Decision: 10.03.2025 Commissioner of Income Tax (TDS)-2, Chandigarh …Appellant Vs. M/s Vodafone Idea Limited (earlier known as Vodafone Mobile Services Limited). ….Respondent and (2). ITA-120-2021 (O&M) Commissioner of Income Tax (TDS)-2, Chandigarh …Appellant Vs. M/s Vodafone Idea Limited (earlier known as Vodafone Mobile Services Limited). ...Respondent and (3). ITA-121-2021 (O&M) Commissioner of Income Tax (TDS)-2, Chandigarh …Appellant Vs. M/s Vodafone Idea Limited (earlier known as Vodafone Mobile Services Limited). ...Respondent and (4). ITA-130-2021 (O&M) Commissioner of Income Tax (TDS)-2, Chandigarh …Appellant Vs. M/s Vodafone Idea Limited (earlier known as Vodafone Mobile Services Limited). ….Respondent CORAM: HON'BLE MRS. JUSTICE LISA GILL HON'BLE MR. JUSTICE DEEPINDER SINGH NALWA Present: Mr. Amanpreet Singh, Advocate for the appellant(s). *** LISA GILL

, J. (ORAL)

ITA-42-2021 (O&M) and other connected cases -2- 2. Issue raised in these appeals is as to whether the discount offered by assessee to the distributor for its prepaid services is not commission or brokerage as envisaged under Section 194-H of the Income Tax Act, 1961. 3. These appeals were adjourned sine die on 04.08.2022 to be listed after the decision of Civil Appeal No.1202 of 2011 titled as “Idea Cellular Limited Vs. Commissioner of Income Tax-XVII)”. 4. Learned counsel for the appellant submits that said issue is no more res integra in view of decision dated 28.02.2024 of Hon’ble the Supreme Court in Civil Appeal No.7257 of 2011 titled “Bharti Cellular Limited (Now Bharti Airtel Limited) Vs. Assistant Commissioner of Income Tax, Circle 57, Kolkata and another”. Relevant extract thereof is reproduced as under:- “42. In view of the aforesaid discussion, we hold that the assessees would not be under a legal obligation to deduct tax at source on the income/profit component in the payments received by the distributors/franchisees from the third parties/customers, or while selling/transferring the pre-paid coupons or starter-kits to the distributors. Section 194-H of the Act is not applicable to the facts and circumstances of this case. Accordingly, the appeals filed by the assessee- cellular mobile service providers, challenging the judgments of the High Courts of Delhi and Calcutta are allowed and these judgments are set aside. The appeals filed by the Revenue challenging the judgments of High Courts of Rajasthan, Karnataka and Bombay are dismissed. There would be no orders as to cost. Pending Applications, if any, shall stand disposed of.” 5. In view of the above judgment Bharti Cellular Limited (supra), passed by Hon’ble the Supreme Court, similar appeals i.e. ITA-8533-2018 and ITA-8534-2018, have earlier been dismissed on 07.11.2024 by co-ordinate Parveen Kumar 2025.03.17 12:14 I attest to the accuracy and integrity of this document

ITA-42-2021 (O&M) and other connected cases -3- Division Bench of this Court. Learned counsel for the appellant(s) is unable to point out any distinction which calls for a different dispensation. 6. Accordingly, keeping in view the judgment passed by Hon’ble the Supreme Court in case of Bharti Cellular Limited (supra), the present appeals are dismissed. 7. Pending miscellaneous application(s), if any, shall stand disposed of. (LISA GILL) JUDGE

(DEEPINDER SINGH NALWA) 10.03.2025

JUDGE Parveen kumar Whether speaking/reasoned :Yes/No Whether reportable :Yes/No

Parveen Kumar 2025.03.17 12:14 I attest to the accuracy and integrity of this document