Vodafone South Limited, Bangalore V. Deputy Director of Income Tax (international Taxation), Circle-1(1), Bangalore

MA 3/BANG/2020

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The case involves Vodafone Idea Ltd., the appellant, contesting a consolidated order by the Income Tax Department regarding the classification of certain payments made for interconnect usage and bandwidth. The core issue was whether these payments should be classified as royalty, which would necessitate the deduction of Tax Deducted at Source (TDS). The assessee argued that these payments do not fall under the ambit of royalty, referencing a favorable decision from the Karnataka High Court for the assessment years in question. The Department of Income Tax did not object to the withdrawal of the petitions following the High Court's decision. Consequently, the Tribunal dismissed the petitions as infructuous.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124324 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 7 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 27-07-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 02-12-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: TDS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH : BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI. LAXMI PRASAD SAHU, ACCOUNTANT MEMBER M.P. Nos. 3 to 5/Bang/2020 (in IT(IT)A Nos. 1160 & 1161/Bang/2015 & 2818/Bang/2017) Assessment Years : 2013-14 to 2015-16 M/s. Vodafone Idea Ltd., Maruthi Infotech Centre, 11/1, 12/1, Koaramangala, Amar Jyoti Layout, Bangalore – 71. PAN: AABCB5847L Vs. The Deputy Director of Income Tax (International Tax), Circle 1 (1), Bangalore. APPELLANT RESPONDENT Assessee by : Shri Vibhu Jain, CA Revenue by : Shri Dilip, Junior Standing Counsel for Dept. Date of Hearing : 28-07-2023 Date of Pronouncement : 31-07-2023 ORDER PER BEENA PILLAI, JUDICIAL MEMBER These three miscellaneous petitions are filed by assessee against a consolidated order passed by the Coordinate Bench of this Tribunal dated 28.11.2019. 2. In the miscellaneous petitions, the assessee has alleged that, the charges paid by the assessee for interconnect usage and bandwidth to various parties will not fall within the ambit of royalty and therefore no TDS was bound to be deducted. Page 2 of 3 M.P. Nos. 3 to 5/Bang/2020 (in IT(IT)A Nos. 1160 & 1161/Bang/2015 & 2818/Bang/2017) 3. It is the submission of the Ld.AR that in assessee’s own case, for the years under consideration, Hon’ble Karnataka High Court in ITA No. 64/2020 for A.Y. 2014-15, ITA No. 65/2020 for A.Y. 2015-16 and ITA No. 66/2020 for A.Y. 2013-14 has decided the issue in favour of the assessee, and has held that, the payments made by assessee cannot be treated either as royalty or as FTS vide order dated 14.07.2023. 4. The assessee pursuant to this decision by Hon'ble Karnataka High Court submitted to seek withdrawal of the present miscellaneous petitions. The Ld.DR did not object for the submissions made by the Ld.AR. Accordingly, the present miscellaneous petitions filed by assessee are dismissed as infructuous. In the result, all the three miscellaneous petitions filed by the assessee stands dismissed as infructuous. Order pronounced in open court on 31 st July, 2023. Sd/- Sd/- (LAXMI PRASAD SAHU) (BEENA PILLAI) Accountant Member Judicial Member Bangalore, Dated, the 31 st July, 2023. /MS / Page 3 of 3 M.P. Nos. 3 to 5/Bang/2020 (in IT(IT)A Nos. 1160 & 1161/Bang/2015 & 2818/Bang/2017) Copy to: 1. Appellant 4. CIT(A) 2. Respondent 5. DR, ITAT, Bangalore 3. CIT 6. Guard file By order Assistant Registrar, ITAT, Bangalore