COMMUNICATIONS GLOBAL NETWORK V. THE DEPUTY COMMISSIONER OF

WP/11110/2024

AI Insights

The case involves Communications Global Network Services Limited, a company registered in Bermuda and a tax resident of the United Kingdom, challenging an order by the Indian tax authorities under sections 143(3) and 144C of the Income Tax Act for the assessment year 2018-19. The petitioner sought to quash the order claiming it was unjust, referencing several precedents where similar issues were resolved in favor of the assessee. The respondents did not contest the applicability of these precedents to the current case. The court, after reviewing the submissions and precedents, decided in favor of the petitioner, quashing the impugned order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 697504 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 18-04-2024
• Assessment Year: misc
• Other Referred Cases: M/s. Vodafone Idea Limited Vs. District Director of Income Tax and Others, M/s. Deutsche Telekom Ag, Darmstadt. Vs The Joint Commissioner of Income Tax, MCI International Inc. V/s Deputy Commissioner of Income Tax
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: T SURYANARAYANA
• Keywords: Assessment year 2018-19; Certiorari; Certiorari; International Taxation; Non-resident Taxability; Writ petition
• Section: 143(3); 144C; 148A

Judgement Text

" - 1 - NC: 2024:KHC:15408 WP No. 11110 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF APRIL, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 11110 OF 2024 (T-IT) BETWEEN: COMMUNICATIONS GLOBAL NETWORK SERVICES LIMITED, 1 BRAHAM STREET, E1 8EE LONDON, A COMPANY REGISTERED UNDER THE LAWS OF BERMUDA, AND A TAX RESIDENT OF UNITED KINGDOM, REPRESENTED HEREIN BY ITS AUTHORIZED REPRESENTATIVE MR. BIJU P THOMAS …PETITIONER (BY SRI. T. SURYANARAYANA, SENIOR COUNSEL FOR SMT. TANMAYEE RAJKUMAR, ADVOCATE) AND: 1. THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION), CIRCLE-2(2), 4TH FLOOR, BMTC BUILDING, 80 FT ROAD, KORAMANGALA, BANGALORE – 560 095 2. THE COMMISSIONER OF INCOME-TAX, (INTERNATIONAL TAXATION) BMTC BUILDING, 80 FT ROAD, KORAMANGALA, BANGALORE – 560 095 3. ASSISTANT COMMISSIONER OF INCOME-TAX, INTERNATIONAL T AXATION, CIRCLE 1(2)(1), CIVIC CENTRE, MINTO ROAD, NEW DELHI – 110 002 …RESPONDENTS (BY SRI. .M. DILIP, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER Digitally signed by VANDANA S Location: High Court of Karnataka - 2 - NC: 2024:KHC:15408 WP No. 11110 of 2024 DTD.15.03.24 BEARING NO. ITBA/AST/F/144C/2023-24/1062667534(1) VIDE ANNEXURE-K PASSED BY THE R1 UNDER SECTION 143 (3) READ WITH SECTION 144 C OF THE ACT FOR THE ASSESSMENT YEAR 2018-19 AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER In this petition, petitioner seeks for the following reliefs:- (1) Issue a writ of certiorari or similar writ, order or direction quashing the order dated 15.03.2024 bearing DIN No.ITBA/AST/F/144C/2023-24/1062667534(1) vide Annexure-K passed by the 1st respondent under Section 143(3) r/w Section 144C of the Act for the assessment year 2018-19 and (ii) Pass such other or further orders as this Hon’ble Court may deem fit in the facts and circumstances of the case in the interest of justice and equity. 2. Heard learned Senior counsel for the petitioner and learned counsel for the respondents and perused the material on record. 3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned Senior counsel for the petitioner submits that the issue in controversy involved in the present petition is squarely covered by the judgment - 3 - NC: 2024:KHC:15408 WP No. 11110 of 2024 of the Hon’ble Division Bench of this Court in the case of M/s. Vodafone Idea Limited Vs. District Director of Income Tax and Others- ITA No.160/2015 and connected matters dated 14.07.2023. The said judgment was followed by the co-ordinate Bench of this Court in the case of M/s. Deutsche Telekom Ag, Darmstadt. Vs The Joint Commissioner of Income Tax - W.P.No.51999/2019 and connected matters dated 23.08.2023. 3.1 It is further submitted that the aforesaid judgment was also followed by this Court under identical circumstances arising out of proceedings under Section 148A of the Income Tax Act, 1961, in the case of MCI International Inc. V/s Deputy Commissioner of Income Tax - W.P.No.38059/2019 dated 13.10.2023. It is therefore submitted that the impugned order dated 15.03.2024 at Annexure-K deserves to be quashed. 4. Per contra, learned counsel for the respondents does not dispute that the issue in controversy involved in the present petition relating to taxability of monies paid to non-resident entities was held in favour of the assessee in the aforesaid judgments of this Court. It is therefore submitted that appropriate orders may be passed by this Court in the present petition also. - 4 - NC: 2024:KHC:15408 WP No. 11110 of 2024 5. In view of the aforesaid facts and circumstances and on perusal of the judgments of this Court referred to supra, I am of the view that the impugned order referred to above deserves to be quashed. 6. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned order at Annexure-K dated 15.03.2024 passed by the 1st respondent is hereby quashed. Sd/- JUDGE Srl. "