M/S DEUTSCHE TELEKOM A G V. THE DEPUTY COMMISSIONER OF INCOME TAX

WP/5867/2022

AI Insights

The case involves multiple writ petitions filed by M/s Deutsche Telekom A G against the Deputy Commissioner of Income Tax, International Taxation, challenging notices issued under sections 148 and 143(2) read with 147 of the Income Tax Act. The petitions primarily contested the taxability of payments made to non-resident individuals for various assessment years. The High Court referenced a prior decision (ITA No.160/2015) which had addressed similar issues, leading to the conclusion that the questions raised were no longer res integra. Consequently, the court quashed the notices and proceedings against the petitioner.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 752387 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 07-09-2023
• Assessment Year: misc
• Other Referred Cases: ITA No.160/2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M
• Assessee Lawyers: SHARATH
• Keywords: Income Tax; International Taxation; Notice Quash; Writ petition
• Section: 147; 148; 143(2); 148A(d)

Judgement Text

" - 1 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF SEPTEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 5867 OF 2022 (T-IT) C/W WRIT PETITION NO. 5879 OF 2022 (T-IT) WRIT PETITION NO. 5880 OF 2022 (T-IT) WRIT PETITION NO. 5881 OF 2022 (T-IT) WRIT PETITION NO. 17338 OF 2022 (T-IT) & WRIT PETITION NO. 12232 OF 2023 (T-IT) IN WP NO. 5867/2022 BETWEEN: M/S DEUTSCHE TELEKOM A G FRIEDRICH -EBERT-ALLE 140 53113 BONN, GERMANY (REP BY ITS HEAD OF TRANSACTION TAX SRI ULRICH HARTMANN S/O SRI WERNER HARTMANN AGED ABOUT 62 YEARS) …PETITIONER (BY SRI. SHARATH S.,ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION) CIRCLE - 2(1), BMTC BUILDING Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 80 FT ROAD, KORAMANGALA BENGALURU 560 095. …RESPONDENT (BY SRI. M. DILIP ADVOCATE FOR SRI. ARAVIND K .V, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY ORDER THE IMPUGNED NOTICE ISSUED U/S 148 OF THE IT ACT DATED 29.03.2021 ISSUED BY THE RESPONDENT, ENCLOSED AS ANNEXURE-A; QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN ORDER, THE IMPUGNED NOTICE ISSUED BY THE RESPONDENT U/S 143(2) R/W 147 OF THE IT ACT DATED 20.05.2021 SUPPLYING THE REASONS IN THE SAID NOTICE ENCLOSED AS ANNEXURE-B. IN WP NO. 5879/2022 BETWEEN: M/S DEUTSCHE TELEKOM A G FRIEDRICH -EBERT-ALLE 140 53113 BONN, GERMANY (REP BY ITS HEAD OF TRANSACTION TAX SRI ULRICH HARTMANN S/O SRI WERNER HARTMANN AGED ABOUT 62 YEARS) …PETITIONER (BY SRI. SHARATH S.,ADVOCATE) - 3 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 AND: THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION) CIRCLE - 2(1), BMTC BUILDING 80 FT ROAD, KORAMANGALA BENGALURU 560 095. …RESPONDENT (BY SRI. M. DILIP ADVOCATE FOR SRI. ARAVIND K .V, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN ORDER THE IMPUGNED NOTICE ISSUED U/S 148 OF THE IT ACT DATED 31.03.2021 ISSUED BY THE RESPONDENT, ENCLOSED AS ANNEXURE-A; QUASH AS FAR AS THE PETITIONER IS CONCERNED AN ORDER THE IMPUGNED NOTICE ISSUED BY THE RESPONDENT U/S 143(2) R/W 147 OF THE IT ACT DATED 22.05.2021 SUPPLYING THE REASONS ENCLOSED AS ANNEXURE- B. QUASH AS FAR AS THE PETITIONER IS CONCERNED AN ORDER THE IMPUGNED ORDER OF THE RESPONDENT DATED 17.12.2021 OVERRULING THE OBJECTIONS FILED BY THE PETITIONER, ENCLOSED AS ANNEXURE-C AND ETC. IN WP NO. 5880/2022 BETWEEN: M/S DEUTSCHE TELEKOM A G FRIEDRICH -EBERT-ALLE 140 53113 BONN, GERMANY (REP BY ITS HEAD OF TRANSACTION TAX SRI ULRICH HARTMANN - 4 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 S/O SRI WERNER HARTMANN AGED ABOUT 62 YEARS) …PETITIONER (BY SRI. SHARATH S., ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION) CIRCLE - 2(1), BMTC BUILDING 80 FT ROAD, KORAMANGALA BENGALURU 560 095. …RESPONDENT (BY SRI. M. DILIP ADVOCATE FOR SRI. ARAVIND K .V, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN ORDER THE IMPUGNED NOTICE ISSUED U/S 148 OF THE IT ACT DATED 31.03.2021 ISSUED BY THE RESPONDENT, ENCLOSED AS ANNEXURE-A; QUASH AS FAR AS THE PETITIONER IS CONCERNED AN ORDER THE IMPUGNED NOTICE ISSUED BY THE RESPONDENT U/S 143(2) R/W 147 OF THE IT ACT DATED 22.06.2021 SUPPLYING THE REASONS ENCLOSED AS ANNEXURE- B. QUASH AS FAR AS THE PETITIONER IS CONCERNED AN ORDER THE IMPUGNED ORDER OF THE RESPONDENT DATED 17.12.2021 OVERRULING THE OBJECTIONS FILED BY THE PETITIONER, ENCLOSED AS ANNEXURE-C AND ETC. - 5 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 IN WP NO. 5881/2022 BETWEEN: M/S DEUTSCHE TELEKOM A G FRIEDRICH -EBERT-ALLE 140 53113 BONN, GERMANY (REP BY ITS HEAD OF TRANSACTION TAX SRI ULRICH HARTMANN S/O SRI WERNER HARTMANN AGED ABOUT 62 YEARS) …PETITIONER (BY SRI. SHARATH S.,ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION) CIRCLE - 2(1), BMTC BUILDING 80 FT ROAD, KORAMANGALA BENGALURU 560 095. …RESPONDENT (BY SRI. M. DILIP ADVOCATE FOR SRI. ARAVIND K .V, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN ORDER THE IMPUGNED NOTICE ISSUED U/S 148 OF THE IT ACT DATED 26.02.2021 ISSUED BY THE RESPONDENT, ENCLOSED AS ANNEXURE-A; QUASH AS FAR AS THE PETITIONER IS CONCERNED AN ORDER THE IMPUGNED NOTICE ISSUED BY THE RESPONDENT U/S 143(2) R/W 147 OF THE IT ACT DATED 22.06.2021 SUPPLYING THE REASONS ENCLOSED AS ANNEXURE- B. QUASH AS FAR AS THE PETITIONER IS CONCERNED - 6 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 AN ORDER THE IMPUGNED ORDER OF THE RESPONDENT DATED 17.12.2021 OVERRULING THE OBJECTIONS FILED BY THE PETITIONER, ENCLOSED AS ANNEXURE-C AND ETC. IN WP NO. 17338/2022 BETWEEN: M/S DEUTSCHE TELEKOM A G FRIEDRICH -EBERT-ALLE 140 53113 BONN, GERMANY (REP BY ITS HEAD OF TRANSACTION TAX SRI ULRICH HARTMANN S/O SRI WERNER HARTMANN AGED ABOUT 62 YEARS) …PETITIONER (BY SRI. SHARATH S.,ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION) CIRCLE - 2(1), BMTC BUILDING 80 FT ROAD, KORAMANGALA BENGALURU 560 095. …RESPONDENT (BY SRI. M. DILIP ADVOCATE FOR SRI. ARAVIND K .V, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN ORDER THE IMPUGNED NOTICE ISSUED U/S 148 OF THE IT ACT BEARING NO. ITBA/AST/148- 1/2022023/1042877343(1) DATED 27.04.2022 ISSUED BY THE R1, ENCLOSED AS ANNEXURE-A; QUASH AS - 7 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 FAR AS THE PETITIONER IS CONCERNED THE IMPUGNED ORDER U/S 148A(d) MADE BY THE FIRST RESPONDENT BEARING NO. ITBA/AST/F/148A/2022- 23/1042877179(1) DATED 27.04.2022 FOR THE A.Y. 2018-19, ENCLOSED AS ANNEXURE-B. IN WP NO. 12232/2023 BETWEEN: M/S DEUTSCHE TELEKOM A G FRIEDRICH -EBERT-ALLE 140 53113 BONN, GERMANY (REP BY ITS HEAD OF TRANSACTION TAX SRI ULRICH HARTMANN S/O SRI WERNER HARTMANN AGED ABOUT 62 YEARS) …PETITIONER (BY SRI. SHARATH S.,ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION) CIRCLE - 2(1), BMTC BUILDING 80 FT ROAD, KORAMANGALA BENGALURU 560 095. …RESPONDENT (BY SRI. M. DILIP ADVOCATE FOR SRI. ARAVIND K .V, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN APPROPRIATE WIRT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED NOTICE ISSUED U/S 148 OF THE IT ACT BEARING DIN - 8 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 ITBA/AST/S/148A/2023-24/1052179066(1) DATED 19.04.2023 FOR THE AY 2016-17 ISSUED BY THE RESPONDENT ENCLOSED AS ANNEXURE-A; QUASH AS FOR AS THE PETITIONER IS CONERNED BY AN APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE THE IMPUGNED ORDER UNDER SECTION 148A(D) MADE BY THE RESPONDENT BEARING DIN ITBA/AST/F/148A/2023- 24/1052176987(1) DATED 19.04.2023 FOR THE AY 2016-17 ENCLOSED AS ANNEXURE-B. THESE PETITIONS, COMING ON FOR ORDERS, 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 paid by the petitioner to non-resident individuals 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 no longer res integra in view of the decision of a Division Bench in *ITA No.160/2015 *Corrected vide Court order dated 02.11.2023 - 9 - NC: 2023:KHC:32325 WP No. 5867 of 2022 C/W WP No. 5879 of 2022 WP No. 5880 of 2022 WP No. 5881 of 2022 WP No. 17338 of 2022 WP No. 12232 of 2023 and connected matters. In fact, a copy of the order dated 23.08.2023 in these writ petitions is placed on record. The submissions remain undisputed, and therefore the petitions are allowed quashing the respective notices impugned and the impugned proceedings in these petitions. Sd/- JUDGE NV List No.: 1 Sl No.: 46 "