M/S. DEUTSCHE TELEKOM AG, DARMSTADT., V. THE JOINT COMMISSINOER OF INCOME TAX

WP/51999/2019

AI Insights

The case involves M/S. Deutsche Telekom AG, Darmstadt, challenging notices issued under Section 148 of the Income Tax Act by the Income Tax Department, Bengaluru, regarding the taxability of payments made to Non-Resident Indians. The petitions were filed under Articles 226 and 227 of the Constitution of India, seeking to quash the notices. The court referred to a recent Division Bench decision in a similar case involving M/S. VODAFONE IDEA LIMITED, which had established that such payments are not taxable. Consequently, the court decided in favor of the petitioner, quashing the notices and proceedings against them.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 687765 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 23-08-2023
• Assessment Year: misc
• Other Referred Cases: M/S. VODAFONE IDEA LIMITED vs DEPUTY DIRECTOR OF INCOME TAX & ANOTHER
• Laws Referred To: Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K V ARAVIND
• Assessee Lawyers: CHYTHANYA; S SHARATH
• Keywords: Impugned notice; Writ of Certiorari; Taxability of monies paid to Non- Resident Indians
• Section: 148

Judgement Text

" - 1 - NC: 2023:KHC:30024 WP No. 51999 of 2019 C/W WP No. 53137 of 2018 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF AUGUST, 2023 BEFORE THE HON'BLE MR JUSTICE KRISHNA S DIXIT WRIT PETITION NO. 51999 OF 2019 (T-IT) C/W WRIT PETITION NO. 53137 OF 2018 (T-IT) IN WP.NO.51999/2019: BETWEEN: M/S. DEUTSCHE TELEKOM AG, DARMSTADT., FRIEDRICH-EBERT-ALLE 140, 43113 BONN, GERMANY, (REP. BY ITS HEAD OF TRANSACTION TAX, SRI. ULRICH HARTMANN, S/O. SRI. WERNER HARTMANN, AGED ABOUT 59 YEARS). …PETITIONER (BY SMT. CHYTHANYA K.K., SENIOR COUNSEL A/WITH SRI. S. SHARATH, ADVOCATE) AND: 1. THE JOINT COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION), CIRCLE-2(1), ROOM NO.440, 4TH FLOOR, BMTC BUILDING, 80 FT. ROAD, KORAMANGALA, BENGALURU - 560 095. 2. THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION), CIRCLE-2(1), ROOM NO.440, 4TH FLOOR, BMTC BUILDING, 80 FT. ROAD, KORAMANGALA, BENGALURU - 560 095. Digitally signed by SHARADA VANI B Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:30024 WP No. 51999 of 2019 C/W WP No. 53137 of 2018 3. THE ASSISTANT COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION), CIRCLE-2(1), ROOM NO.440, 4TH FLOOR, BMTC BUILDING, 80 FT. ROAD, KORAMANGALA, BENGALURU - 560 095. …RESPONDENTS (BY SRI. K.V. ARAVIND, ADVOCATE) THIS WRIT PETITION 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 OR OTHERWISE THE IMPUGNED NOTICE ISSUED U/S 148 OF THE IT ACT DATED 30.03.2018 BY THE R-1 ENCLOSED AS ANNEXURE-A AND ETC., IN WP.NO.53137/2018: BETWEEN: M/S. DEUTSCHE TELEKOM AG, DARMSTADT., FRIEDRICH-EBERT-ALLE 140, 43113 BONN, GERMANY, (REP. BY ITS HEAD OF TRANSACTION TAX, SRI. ULRICH HARTMANN, S/O. SRI. WERNER HARTMANN, AGED ABOUT 59 YEARS). …PETITIONER (BY SMT. CHYTHANYA K.K., SENIOR COUNSEL A/WITH SRI. S. SHARATH, ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION), CIRCLE-2(1), ROOM NO.440, 4TH FLOOR, BMTC BUILDING, 80 FT. ROAD, KORAMANGALA, BENGALURU - 560 095. …RESPONDENT (BY SRI. K.V. ARAVIND, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AS FAR AS THE PETITIONER IS CONCERNED BY AN - 3 - NC: 2023:KHC:30024 WP No. 51999 of 2019 C/W WP No. 53137 of 2018 APPROPRIATE WRIT OR ORDER IN THE NATURE OF CERTIORARI OR OTHERWISE, THE IMPUGNED NOTICE ISSUED U/S 148 OF THE IT ACT, DATED 28.03.2017 VIDE ANNEXURE-A AND ETC., THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING: ORDER The short question that arises for consideration in this case is as to the taxability of monies paid to Non- Resident Indians. That question need not detain the court since the same is no longer res integra in view of a Division Bench decision in ITA No.160/2017 & connected matters, between M/S. VODAFONE IDEA LIMITED vs DEPUTY DIRECTOR OF INCOME TAX & ANOTHER, disposed off on 14.07.2023, wherein it is held that such monies are not taxable. In view of the above, writ petitions having been favoured, a Writ of Certiorari issues and the impugned proceedings stand quashed. Costs made easy. Sd/- JUDGE ABK "