M/S MAXIS INTERNATIONAL SDN BHD V. THE DEPUTY COMMISSIONER OF INCOME TAX

WP/4806/2022

AI Insights

The case involves multiple writ petitions filed by various international companies against the Deputy Commissioner of Income Tax, challenging the reassessment proceedings initiated for different assessment years. The primary legal issue was the taxability of amounts received by the petitioners, which had been previously addressed in earlier cases. The High Court of Karnataka, referencing a Division Bench decision, found that the issue was settled and thus quashed the reassessment notices and proceedings against the petitioners.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 760282 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 02-11-2023
• Assessment Year: misc
• Other Referred Cases: W.P.No.51999/2019, W.P.No.53137/2008, ITA No.160/2015
• Laws Referred To: Article 226 of the Constitution of India, Article 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: DILIP; SHRAVANTH ARYA TONDRA
• Assessee Lawyers: KAMAL SAWHNEY; MOHAMMED SHAKEEB MULLA; ADITYA VIKRAM BHAT; HARPREET SINGH AJMANI
• Keywords: Income Tax; International Taxation; Reassessment proceedings
• Section: 143(3)

Judgement Text

"- 1 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF NOVEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 4806 OF 2022 (T-IT) C/W WRIT PETITION NO. 51579 OF 2019 (T-IT) WRIT PETITION NO. 4966 OF 2022 (T-IT) WRIT PETITION NO. 5339 OF 2022 (T-IT) WRIT PETITION NO. 5446 OF 2022 (T-IT) WRIT PETITION NO. 5452 OF 2022 (T-IT) IN WP NO. 4806/2022 BETWEEN: M/S MAXIS INTERNATIONAL SDN BHD LEVEL 21 MENARA MAXIS KUALA LUMPUR CITY CENTRE, 50088, KUALA LUMPUR MALAYSIA REPRESENTED BY ITS AUTHORISED SIGNATORY. …PETITIONER (BY SRI KAMAL SAWHNEY, ADVOCATE A/W. SRI. MOHAMMED SHAKEEB M MULLA.,ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE -2(2), Digitally signed by NARASIMHA MURTHY VANAMALA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 ROOM NO.430, 4TH FLOOR, BMTC BUILDING 80 FT ROAD, 6TH BLOCK, KORAMANGALA BENGALURU-560095. …RESPONDENT (BY SRI. DILIP M.,ADVOCATE) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE DATED 27.2.2021 ANNEXURE-A ISSUED BY THE RESPONDENT INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2014-15; QUASH THE IMPUGNED ORDER DATED 31.12.2021 ANNEXUR-D PASSED BY THE RESPONDENT DISPOSING OFF OBJECTIONS AGAINST THE PETITIONER THEREBY CONFIRMING CONTINUATION OF REASSESSMENT PROCEEDINGS FOR AY 2014-15. IN WP NO. 51579/2019 BETWEEN: M/S SINGAPORE TELECOMMUNICATIONS LIMITED, SINGAPORE 31 EXETER ROAD COMCENTRE SINGAPORE-239732 SINGAPORE, REPRESENTED HEREIN BY ITS AUTHORIZED SIGNATORY MR QUAH KUNG YANG. …PETITIONER (BY SRI. ADITYA VIKRAM BHAT.,ADVOCATE) - 3 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 AND: 1. THE ASSISTANT COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE-2(1), ROOM NO.440 4TH FLOOR, BMTC BUILDING 80 FT ROAD, KORAMANGALA BENGALURU-560095. 2. THE COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION ROOM NO.741, 7TH FLOOR BMTC BUILDING, 80 FT ROAD KORMANGALA BENGALURU-560095. 3. M/S VODAFONE IDEA LIMITED 10TH FLOOR BIRLA CENTURION CENTURION MILLS COMPOUND PANDURANG BUDKKAR MARG WORLI, MUMBAI-400030. REP BY ITS DIRECTOR. 4. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE NORTH BLOCK, CENTRAL SECRETARIATE NEW DELHI-110001 REP BY ITS SECRETARY. …RESPONDENTS (BY SRI. DILIP M.,ADVOCATE FOR R1, R2 & R4; SRI. SHRAVANTH ARYA TONDRA, ADVOCATE FOR R3) - 4 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 30.03.2018 (IMPUGNED NOTICE, MARKED AS ANNEXURE-A) ISSUED BY ASSESSING OFFICER INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2011-12; QUASH THE ORDER DATED 21.10.2019 (MARKED AS ANNEXURE-L PASSED BY THE ASSESSING OFFICER DISPOSING OFF OBJECTIONS AGAINST THE PETITIONER THEREBY CONFIRMING CONTINUATION OF REASSESSMENT PROCEEDINGS FOR A.Y.2011-12. IN WP NO. 4966/2022 BETWEEN: M/S MAXIS INTERNATIONAL SDN BHD LEVEL 21, MENARA MAXIS KUALA LUMPUR CITY CENTRE, 50088, KUALA LUMPUR MALAYSIA REPRESENTED BY ITS AUTHORISED REPRESENTIVE MR. NORMAN WAYNE TREEBY SON OF NORMAN RONALD TREEBY AGED ABOUT 67 YEARS HAVING ITS OFFICE AT MENARA MAXIS KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR CITY CENTRE, MALAYSIA. …PETITIONER (BY SRI KAMAL SAWHNEY, ADVOCATE A/W. SRI. MOHAMMED SHAKEEB M MULLA.,ADVOCATE) - 5 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 AND: DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE 2(2) ROOM NO. 430, 4TH FLOOR HAVING ITS OFFICE AT BMTC BUILDING 80 FT ROAD, 6TH BLOCK, KORAMANGALA BENGALURU-560095. …RESPONDENT (BY SRI. DILIP M.,ADVOCATE) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE DATED 27.2.2021 A ISSUED BY THE RESPONDENT INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2013-14. IN WP NO. 5339/2022 BETWEEN: ORANGE 111 QUAI DU PRESIDENT ROOSEVELT 92130 ISSY- LES MOULINEUX FRANCE, REPRESENTED BY ITS AUTHORISED SIGNATORY, MR. BENOIT DELAPLACE. …PETITIONER (BY SRI. HARPREET SINGH AJMANI, ADVOCATE A/W. SRI. YOGESHA B.,ADVOCATE) - 6 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 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, KORMANGALA, BENGALURU-560095. 2. THE COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION, ROOM NO.741, 7TH FLOOR, BMTC BUILDING, 80 FT ROAD, 6TH BLOCK, KORMANGALA, BENGALURU-560095. 3. VODAFONE IDEA LIMITED 10TH FLOOR, BIRLA CENTURION, CENTURION MILLS COMPOUND, PANDURANG BUDKKAR MARG, WORLI, MUMBAI-400030. REPRESENTED BY ITS DIRECTORS. 4. THE CENTRAL BOARD OF DIRECT TAXES DEPARTMENT OF REVENUE, NORTH BLOCK, CENTRAL SECRETARIAT, NEW DELHI-110001. REPRESENTED BY ITS CHAIRMAN. …RESPONDENTS (BY SRI. DILIP M., ADVOCATE) - 7 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 THIS WP IS FILED UNDER ARTICLES 226 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE NOTICE DATED 26/02/2021 (IMPUGNED NOTICE MARKED AS ANNEXURE-A) ISSUED BY THE ASSESSING OFFICER INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2013-14; QUASHING THE ORDER DATED 29/02/2021 (MARKED AS ANNEXURE-H) PASSED BY THE ASSESSING OFFICER DISPOSING OFF OBJECTIONS AGAINST THE PETITIONER THEREBY CONFIRMING CONTINUATION OF REASSESSMENT PROCEEDINGS FOR AY 2013-14; IN WP NO. 5446/2022 BETWEEN: M/S M1 LIMITED 10, INTERNATION BUSINESS PARK, SINGAPORE, 609928 REPRESENTED BY ITS AUTHORISED SIGNATORY LEE KOK CHEW SON OF LEE CHIN LAM AGED ABOUT 53 YEARS 10 INTERNATIONAL BUISNESS PARK SINGAPORE 609928. ….PETITIONER (BY SRI KAMAL SAWHNEY, ADVOCATE A/W. SRI. MOHAMMED SHAKEEB M MULLA.,ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE 2(2) ROOM NO. 430, 4TH FLOOR - 8 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 BMTC BUILDING, 80 FT ROAD, 6TH BLOCK KORMANGALA, BENGALURU 560 095. …RESPONDENT (BY SRI. M. DILIP, ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE DATED 27.02.2021 ANNEXURE A ISSUED BY THE RESPONDENT INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2014-15. IN WP NO. 5452/2022 BETWEEN: M/S M1 LIMITED 10, INTERNATIONAL BUSINESS PARK, SINGAPORE, 609928 REPRESENTED BY ITS AUTHORISED SIGNATORY LEE KOK CHEW, SON OF LEE CHIN LAM AGED ABOUT 53 YEARS 10 INTERNATIONAL BUSINESS PARK SINGAPORE 609928. ….PETITIONER (BY SRI KAMAL SAWHNEY, ADVOCATE A/W. SRI. MOHAMMED SHAKEEB M MULLA.,ADVOCATE) AND: THE DEPUTY COMMISSIONER OF INCOME TAX INTERNATIONAL TAXATION CIRCLE 2(2) ROOM NO. 430, 4TH FLOOR BMTC BUILDING, 80 FT ROAD, - 9 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 6TH BLOCK, KORMANGALA, BENGALURU 560 095. …RESPONDENT (BY SRI. M. DILIP, ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE DATED 27.02.2021 ANNEXURE A ISSUED BY THE RESPONDENT INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE PETITIONER FOR AY 2013-14. 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 petitioners that the question for consideration would be the taxability of the amounts received by petitioners 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 - 10 - NC: 2023:KHC:38873 WP No. 4806 of 2022 C/W WP No. 51579 of 2019 WP No. 4966 of 2022 WP No. 5339 of 2022 WP No. 5446 of 2022 WP No. 5452 of 2022 decision of a Division Bench in ITA No.160/2015 and connected matters. In fact, a copy of the order dated 23.08.2023 in W.P.No.51999/2019 and W.P.No.53137/2008 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 AN/- "