Emirates Telecommunications Group Company (Etisalat Group) P.J.S.C. (Etisalat) V. The Deputy Commissioner of Income Tax International Taxation, Circle-2(2) and The Pr. Chief Commissioner of Income Tax (Intl Taxn), New Delhi

/4539/2024

AI Insights

The case involves Emirates Telecommunications Group Company (Etisalat) P.J.S.C., a petitioner, challenging the reassessment proceedings initiated by the Deputy Commissioner of Income Tax, International Taxation, Bengaluru, and the Principal Chief Commissioner of Income Tax, New Delhi, for the assessment year 2018-19. The petitioner sought to quash the notices and orders issued under Section 148 and Section 148A(d) of the Income Tax Act, 1961, claiming they were unjustified. The court referenced several precedents where similar issues were adjudicated, leading to a decision in favor of the assessee, thereby influencing the outcome of this case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 797757 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 07-03-2024
• Assessment Year: misc
• Other Referred Cases: M/s. Vodafone Idea Limited Vs. District Director of Income Tax and Others- ITA No.160/2015, M/s. Deutsche Telekom Ag, Darmstadt. Vs The Joint Commissioner of Income Tax - W.P.No.51999/2019, MCI International Inc. V/s Deputy Commissioner of Income Tax - W.P.No.38059/2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M DILIP
• Assessee Lawyers: HERPREET AJMANI
• Keywords: Income Tax; Reassessment proceedings; Writ petition; Non-resident Taxability
• Section: 148; 148A

Judgement Text

" - 1 - NC: 2024:KHC:9937 WP No. 4539 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF MARCH, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 4539 OF 2024 (T-IT) BETWEEN: EMIRATES TELECOMMUNICATIONS GROUP COMPANY (ETISALAT GROUP) P.J.S.C. (ETISALAT) (EARLIER KNOWN AS EMIRATES TELECOMMUNICATIONS CORPORATION) E AND HEAD OFFICE BUILDING -A INTERSECTION OF SHEIKH ZAYED THE 1ST STREET SHEIKH RASHID BIN SAEED AL MAKTOUM ROAD PO BOX 3838, ABU DHABI, UAE, REPRESENTED BY ITS AUTHORISED SIGNATORY MR. MOHAMED KARIM BENNIS …PETITIONER (BY SRI. HERPREET SINGH AJMANI FOR SMT. PRERNA PONAPPA.,ADVOCATES) AND: 1. THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, CIRCLE-2(2) ROOM NO.430, 4TH FLOOR, BMTC BUILDING, 80 FT ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU – 560 095. 2. THE PR. CHIEF COMMISSIONER OF INCOME TAX (INTL TAXN), NEW DELHI. …RESPONDENTS (BY SRI.M.DILIP .,ADVOCATE) THIS W.P IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO i) QUASH THE NOTICE UNDER SECTION 148 DATED 07/04/2022 BEARING DIN AND NOTICE NO. ITBA/AST/S/148.1/2022- 23/1042634288(1) (ANNEXURE-C) ISSUED BY THE ASSESSING OFFICER INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2018-19 AND ETC. Digitally signed by LEELAVATHI S R Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC:9937 WP No. 4539 of 2024 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE OURT 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 notice under Section 148 dated 07.04.2022 bearing DIN and Notice no. ITBA/AST/S/148_1/2022- 23/1042634288(1) (ANNEXURE -C) issued by the Assessing Officer initiating reassessment proceedings in the case of the Petitioner for AY 2018-19; (ii) Issue a writ of certiorari or similar writ, order or direction quashing the order dated 07.04.2022 under Section 148A(d) bearing DIN and Notice no. ITBA/AST/F/148A/2022- 23/1042634122(1) (marked as ANNEXURE - B) passed by the Assessing Officer under section 148A(d) of the Act for AY 2018- 19; (iii) Issue any other writ, order or direction as deemed fit and appropriate by this Hon'ble Court in the facts and circumstances of the case, in the interests of justice and equity. 2. Heard learned 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 counsel for the petitioner submits that the issue in controversy involved in - 3 - NC: 2024:KHC:9937 WP No. 4539 of 2024 the present petition is squarely covered by the judgment 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 Notice dated 22.03.2022 vide Annexure-A as well as the impugned order and impugned Notice both dated 07.04.2022 vide Annexures-B and C respectively deserve 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 - 4 - NC: 2024:KHC:9937 WP No. 4539 of 2024 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. 5. In view of the aforesaid facts and circumstances and on perusal of the judgment of this Court referred to supra, I am of the view that the impugned orders and Notice referred to above deserve to be quashed. 6. In the result, I pass the following:- ORDER (i) Petition is hereby allowed. (ii) The impugned Notice at Annexure – A dated 22.03.2022, impugned order at Annexure-B dated 07.04.2022 and impugned notice at Annexure-C dated 07.04.2022 issued / passed by the respondents are hereby quashed. Sd/- JUDGE DHA/SRL List No.: 1 Sl No.: 20 "