M/S BELAGACOM INTERNATIONAL CARRIER SERVICES SA V. JOINT COMMISSIONER OF INCOME TAX

WP/48207/2018

AI Insights

The case involves multiple writ petitions filed by M/s Belgacom International Carrier Services SA Belgium against various income tax authorities in India, challenging the assessment orders and notices of demand for the assessment years 2009-10, 2010-11, and 2011-12. The petitions were filed under Articles 226 and 227 of the Constitution of India, seeking to quash the impugned orders and notices issued by the tax authorities. The court's decision to quash the orders was influenced by a similar case (W.P. No.8195/2021) and a Division Bench decision in ITA No.160/2015. The court also reserved the petitioner's right to revive the petitions depending on the outcome of the Revenue's appeal in the Supreme Court.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 751184 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 27-10-2023
• Assessment Year: misc
• Other Referred Cases: W.P. No.8195/2021, ITA No.160/2015, W.P. No.38059/2019
• Laws Referred To: Article 226 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DILIP
• Assessee Lawyers: RAVI SAWANA; SRIDATTHA CHARAN
• Keywords: Assessment Year; Impugned order; Income Tax; International Taxation; Notice of demand; Quash
• Section: 2011-12; 2009-10; 2010-11

Judgement Text

" - 1 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF OCTOBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 48207 OF 2018 (T-IT) C/W WRIT PETITION NO. 6002 OF 2018 (T-IT) WRIT PETITION NO. 48208 OF 2018 (T-RES) WRIT PETITION NO. 23624 OF 2019 (T-IT) WRIT PETITION NO. 5110 OF 2021 (T-IT) IN WP NO. 48207/2018 BETWEEN: M/S BELAGACOM INTERNATIONAL CARRIER SERVICES SA BELGIUM RUE.LEBAR4 B-1000 BRUSSELS BELGIUM (REPRESENTED BY SUMEET KHURANA AUTHORIZED SIGNATORY). …PETITIONER (BY SRI. RAVI SAWANA & SRI SRIDATTHA CHARAN, ADVOCATES FOR SRI. LAKSHMI KUMARAN.,ADVOCATE) Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 AND: 1. JOINT COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) CIRCLE-2 (1) ROOM NO.441, 4TH FLOOR BMTC BUILDING KORAMANGALA BENGALURU-560 095. 2. PRINCIPLE CHIEF COMMISSIONER OF INCOME -TAX C-3 DONA CYNTHIA 35 PRIMROSE ROAD, BENGALURU -560025. 3. UNION OF INDIA THROUGH OF SECRETARY CENTRAL BOARD OF DIRECT TAXES MINISTRY OF FINANCE NORTH BLOCK NEW DELHI-110 001. …RESPONDENTS (BY SRI. DILIP M.,ADVOCATE FOR R1 TO R3) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO-CALL FOR THE RECORDS OF R-1 FOR THE ASSESSMENT YEAR 2009- 10 IN RESPECT OF THE IMPUGNED ORDER IN THE CASE OF THE PETITIONER VIDE ANNEXURE-A DATED 27.06.2018 AND QUASH THE SAME AND THUS RENDER JUSTICE; CALL FOR THE RECORDS OF R-1 FOR THE ASSESSMENT YEAR 2009-10 IN RESPECT OF THE - 3 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 NOTICE OF DEMAND ISSUED CONSEQUENT TO THE IMPUGNED ORDER IN THE CASE OF THE PETITIONER DATED 27.06.2018 AND QUASH THE SAME AND THUS RENDER JUSTICE. IN WP NO. 6002/2018 BETWEEN: M/S BELAGACOM INTERNATIONAL CARRIER SERVICES SA BELGIUM (REPRESENTED BY SUMEET KHURANA AUTHORIZED SIGNATORY) …PETITIONER (BY SRI. RAVI SAWANA & SRI. SRIDATTHA CHARAN, ADVOCATES FOR SRI. LAKSHMI KUMARAN.,ADVOCATE) AND: 1. DCIT (INGTERNATIONAL TAXATION), CIRCLE-2(1), ROOM NO.441, 4TH FLOOR, BMTC BUILDING KORAMANGALA BENGALURU 560 095. 2. PRINCIPLE CHIEF COMMISISONER OF INCOME-TAX C-3, DONA CYNTHIA 35, PRIMROSE ROAD, BENGALURU 560025. - 4 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 3. UNION OF INDIA THROUGH OF SECRETAWRY CENTRAL BOARD OF DIRECT TAXES MINISTRY OF FINANCE NORTH BLOCK NEW DELHI 110 001. …RESPONDENTS (BY SRI. M DILIP.,ADVOCATE FOR R1 TO R3) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO-CALL FOR THE RECORDS OF RESPONDENT NO.1 FOR THE ASSESSMENT YEAR 2009-10 IN RESPECT OF THE IMPUGNED ORDER IN THE CASE OF THE PETITIONER DATED 26.12.2017 VIDE ANNEXURE-A AND QUASH THE SAME. IN WP NO. 48208/2018 BETWEEN: M/S BELAGACOM INTERNATIONAL CARRIER SERVICES SA BELGIUM RUE LEBEAU 4 B. 1000 BRUSSELS, BELGIUM (REPRESENTED BY SUMEET KHURANA AUTHORISED SIGNATORY) …PETITIONER (BY SRI.RAVI SAWANA & SRI SRIDATTHA CHARAN, ADVOCATES FOR SRI. LAKSHMI KUMARAN., ADVOCATE) - 5 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 AND: 1. JOINT COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) CIRCLE-2(1) 4TH FLOOR, BMTC BUILDING 6TH BLOCK, 80 FEET ROAD KORAMANGALA BENGALURU-560095. 2. PRINCIPLE CHIEF COMMISSIONER OF INCOME TAX C-3, DONA CYNTHIA 35, PRIMROSE ROAD BENGALURU-560025. 3. UNION OF INDIA THROUGH OF SECRETARY CENTRAL BOARD OF DIRECT TAXES MINISTRY OF FINANCE NORTH BLOCK NEW DELHI-110001. …RESPONDENTS (BY SRI. M DILIP., ADVOCATE FOR R1 TO R3) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-CALL FOR THE RECORDS OF R-1 FOR THE ASSESSMENT YEAR 2009-10 IN RESPECT OF THE IMPUGNED ORDER IN THE CASE OF THE PETITIONER DATED 27.06.2018 - 6 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 VIDE ANNEXURE-A AND QUASH THE SAME; CALL FOR THE RECORDS OF R-1 FOR THE ASSESSMENT YEAR 2009-10 IN RESPECT OF THE NOTICE OF DEMAND ISSUED CONSEQUENT TO THE IMPUGNED ORDER IN THE CASE OF THE PETITONER DATED 27.06.2018 AND QUASH THE SAME AND THUS RENDER JUSTICE. IN WP NO. 23624/2019 BETWEEN: M/S BELGACOM INTERNATIONAL CARRIER SERVICES SA BELGIUM, REP BY AUTHORIZED SIGNATORY …PETITIONER (BY SRI. RAVI SAWANA., AND SRI SRIDATTHA CHARAN, ADVOCATES FOR SRI. RAVI RAGHAVAN, ADVOCATE) AND: 1. DCIT (INTERNATIONAL TAXATION) CIRCLE-2(1) ROOM NO.441, 4TH FLOOR, BMTC BUILDING, KORAMANGALA, BENGALURU-95. 2. PRINCIPLE CHIEF COMMISSIONER OF INCOME TAX C-3, DONA CYNTHIA, - 7 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 35, PRIMROSE ROAD, BENGALURU-560025. 3. THE UNION OF INDIA THROUGH ITS REVENUE SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, 128/A, NORTH BLOCK, NEW DELHI-110001. …RESPONDENTS (BY SRI.M. DILIP ., ADVOCATE FOR R1 TO R3) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO-CALL FOR THE RECORDS OF R-1 FOR THE ASSESSMENT YEAR 2010- 11 IN RESPECT OF THE IMPUGNED ORDER IN THE CASE OF THE PETITIOENR DATED 12.12.2018 VIDE ANNX-A AND QUASH THE SAME AND THUS RENDER JUSTICE. IN WP NO. 5110/2021 BETWEEN: M/S BELGACOM INTERNATIONAL CARRIER SERVICES S A BELGIUM (REPRESENTED BY NEETHU JAMES AUTHORIZED SIGNATORY) …PETITIONER (BY SRI. RAVI SAWANA AND SRI SRIDATTHA CHARAN, ADVOCATE FOR SRI. RAVI RAGHAVAN, ADVOCATE) - 8 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 AND: 1. ASSISTANT COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION) CIRCLE-2(2) 4TH FLOOR, BMTC BUILDING, 80 FEET ROAD, NEAR KHB GAMES VILLAGE KORAMANGALA BENGALURU - 560 095. 2. PRINCIPLE CHIEF COMMISSIONER OF INCOME TAX C-3, DONA CYNTHIA 35, PRIMROSE ROAD, BENGALURU - 560 025. 3. UNION OF INDIA THROUGH OF SECRETARY CENTRAL BOARD OF DIRECT TAXES MINISTRY OF FINANCE NORTH BLOCK NEW DELHI - 110 001. …RESPONDENTS (BY SRI.M. DILIP., ADVOCATE FOR R1 TO R3) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO-CALL FOR THE RECORDS OF R-1 FOR THE ASSESSMENT YEAR 2011- 12 IN RESPECT OF THE IMPUGNED ORDER DIN AND LETTER IN THE CASE OF THE PETITIONER DATED 27.12.2019 VIDE ANNEXURE-A AND QUASH THE SAME; - 9 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 CALL FOR THE RECORDS OF R-1 FOR THE ASSESSMENT YEAR 2011-12 IN RESPECT OF THE NOTICE OF DEMAND ISSUED CONSEQUENT TO THE IMPUGNED ORDER IN THE CASE OF THE PETITIONER DATED 27.12.2019 AND QUASH THE SAME AND THUS RENDER JUSTICE. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The learned Counsel for the parties submit in unison that the petitioner in these petitions will be similarly circumstanced as the petitioner in W.P. No.8195/2021 which is disposed of on 07.09.2023, and it is pointed out that the aforesaid writ petition is disposed of in view of the Division Bench decision in ITA No.160/2015. They also submit that in similar circumstances where certain grounds, such as non- compliance with statutory requirements and violation of principles of natural justice, are urged, this Court - 10 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 has reserved liberty to the concerned petitioner to seek revival of the petitions in the event the Revenue fails before the Hon’ble Supreme Court in its petition as against the orders of the Division Bench in ITA No.160/2015. In this regard, this Court’s attention is drawn to the order dated 13.10.2023 in W.P. No.38059/2019 and connected petitions. The learned counsel for the petitioner contends that the respondent could not have proceeded to pass final orders without the draft assessment order and due notice thereon to the petitioner, and in the event the Revenue succeeds before the Hon’ble Supreme Court, and because the petitioner can succeed on the grounds as aforesaid, the petitioner must be reserved with liberty to seek revival of these petitions. The contentions in this regard are not contested. - 11 - NC: 2023:KHC:38124 WP No. 48207 of 2018 C/W WP No. 6002 of 2018 WP No. 48208 of 2018 WP No. 23624 of 2019 WP No. 5110 of 2021 In the light of these circumstances, the petitions stand disposed of quashing the impugned assessment/penalty orders, but with liberty to the petitioner to seek revival of these petitions subject to the outcome of the Revenue’s challenge before the Hon’ble Supreme Court as against the Division Bench’s order dated 14.07.2023 in ITA No.160/2015 and other connected petitions. Sd/- JUDGE NV "