M/S BHARATI HEXACOM LIMITED V. THE COMMISSIONER OF INCOME TAX TDS NER,

I.A.(Civil)/1566/2024

AI Insights

The case involves M/S Bharati Hexacom Limited, which faced several Income Tax Appeals (ITA) concerning tax deductions at source on payments made to distributors/franchisees and on the sale of pre-paid coupons or starter-kits. The core legal issue was whether these transactions fell under the purview of Section 194-H of the Income Tax Act, 1961, which mandates tax deduction at source on certain payments. The Supreme Court had previously decided a similar case, Bharti Cellular Limited vs. Assistant Commissioner of Income Tax, which held that such deductions were not required. The Gauhati High Court, referencing this Supreme Court decision, dismissed the ITAs filed against M/S Bharati Hexacom Limited.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 746764 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 21-06-2024
• Assessment Year: misc
• Other Referred Cases: Bharti Cellular Limited (Now Bharti Airtel Limited) vs. Assistant Commissioner of Income Tax, Circle 57, Kolkata and another
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SC INCOME TAX
• Assessee Lawyers: M DAS; M GOSWAMI; S SHARMA; N NEOG; S BHARALI
• Keywords: Cellular Mobile Service Providers; Income Tax; Supreme Court judgment; Tax deduction at source
• Section: 194-H

Judgement Text

"Page No.# 1/4 GAHC010080002024 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : I.A.(Civil)/1567/2024 M/S BHARATI HEXACOM LIMITED MODRINA MANSION, LAITUMKHRAH MAIN ROAD, SHILLONG 793003 VERSUS THE COMMISSIONER OF INCOME TAX TDS NER G.S. ROAD, GUWAHATI 781005 Advocate for the Petitioner : MR. M DAS Advocate for the Respondent : SC, INCOME TAX Linked Case : ITA/150/2017 THE COMMISSIONER OF INCOME TAX TDS NER TDS NER G.S. ROAD GUWAHATI 781005 VERSUS M/S BHARATI HEXACOM LIMITED MODRINA MANSION LAITUMKHRAH MAIN ROAD SHILLONG 793003 ------------ Advocate for : MR.R S MISHRA Advocate for : MS.M GOSWAMI appearing for M/S BHARATI HEXACOM LIMITED Linked Case : ITA/178/2017 THE COMMISSIONER OF INCOME TAX TDS NER Page No.# 2/4 G.S. ROAD GUWAHATI 781005 VERSUS M/S BHARATI HEXACOM LIMITED MODRINA MANSION LAITUMKHRAH MAIN ROAD SHILLONG 793003 ------------ Advocate for : MR.S SHARMA Advocate for : MR.S BHARALI appearing for M/S BHARATI HEXACOM LIMITED Linked Case : I.A.(Civil)/1566/2024 M/S BHARATI HEXACOM LIMITED MODRINA MANSION LAITUMKHRAH MAIN ROAD SHILLONG 793003 VERSUS THE COMMISSIONER OF INCOME TAX TDS NER G.S. ROAD GUWAHATI 781005 ------------ Advocate for : MRN NEOG Advocate for : SC INCOME TAX appearing for THE COMMISSIONER OF INCOME TAX TDS NER Linked Case : I.A.(Civil)/1565/2024 M/S BHARATI HEXACOM LIMITED MODRINA MANSION LAITUMKHRAH MAIN ROAD SHILLONG 793003 VERSUS THE COMMISSIONER OF INCOME TAX TDS NER G.S. ROAD GUWAHATI 781005 ------------ Advocate for : MR. S BHARALI Advocate for : SC Page No.# 3/4 INCOME TAX appearing for THE COMMISSIONER OF INCOME TAX TDS NER BEFORE HON’BLE THE CHIEF JUSTICE MR. VIJAY BISHNOI HON’BLE MR. JUSTICE KARDAK ETE ORDER Date : 21-06-2024 (Vijay Bishnoi, CJ) The I.A. (Civil) No.1567/2024, I.A. (Civil) No.1566/2024 and I.A. (Civil) No.1565/2024 come for consideration with the prayer to dismiss the connected ITA No.150/2017, ITA No.177/2017 and ITA No.178/2017, on the ground that the issue involved in the said Interlocutory Applications has already been decided by the Hon’ble Supreme Court in Civil Appeal No.7257/2011 (Bharti Cellular Limited (Now Bharti Airtel Limited) vs. Assistant Commissioner of Income Tax, Circle 57, Kolkata and another) and connected Appeals, decided on 28.02.2024, wherein the Hon’ble Supreme Court has held that the cellular mobile service providers would not be under the legal obligation to deduct tax at source of the income/profit component in 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. In other words, the Hon’ble Supreme Court has held that Section 194-H of the Income Tax Act, 1961 is not attracted in the matters. Learned counsel for the Revenue, appearing in the ITA No.150/2017, ITA No.177/2017 and ITA No.178/2017, is not in a position to dispute the said fact. In such circumstances, the I.A. (Civil) No.1567/2024, I.A. (Civil) No.1566/2024 Page No.# 4/4 and I.A. (Civil) No.1565/2024 are allowed. Consequently the ITA No.150/2017, ITA No.177/2017 and ITA No.178/2017 are dismissed, in terms of the judgment of the Hon’ble Supreme Court rendered in Bharti Cellular Limited (Now Bharti Airtel Limited) vs. Assistant Commissioner of Income Tax (supra). JUDGE CHIEF JUSTICE Comparing Assistant "