M/s. Vodafone Mobile Services Limited, V. Assistant Commissioner of Income Tax,

ITTA/281/2018

AI Insights

The case involved M/s. Vodafone Mobile Services Limited appealing against an order from the Commissioner of Income Tax (Appeals)-8, Hyderabad, which was based on a prior decision by the Assistant Commissioner of Income-Tax, TDS circle-2(1), Hyderabad. The core issue was the classification of certain transactions by Vodafone, which were treated as 'commission' by the tax authorities, whereas Vodafone contended they were 'sales'. The High Court's decision was influenced by a Supreme Court judgment in Bharati Cellular Ltd. v. Assistant Commissioner of Income Tax, which had addressed a similar issue favorably for the assesses. Both parties agreed that the Supreme Court's decision was applicable to the case at hand.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 752827 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 03-09-2024
• Assessment Year: misc
• Other Referred Cases: Bharati Cellular Ltd. v. Assistant Commissioner of Income Tax
• Laws Referred To: Income Tax Act 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: A RAMA KRISHAN REDDY
• Assessee Lawyers: A V A SIVA KARTIKEYA
• Keywords: Appeal; Commission; Income Tax; Sale; Supreme Court judgment
• Section: 260A; 151

Judgement Text

"l34',t1l IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE THIRD DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRIJUSTICE NAMAVARAPU RAJESHWAR RAO INCOME TAX TRIBUNAL APPEAL NO: 281 OF 2018 lncome Tax Tribunal Appeal Under Section 260 A of the lncome Tax Act 196't against the order dated 30-05-2018 in ITA No. 41lHyd/2018 on the file of the lncome Tax Appellate Tribunal Hyderabad Bench - B, Hyderabad in for assessment Year 2016-17 preferred against the Order dated 30-1 1-2017 on the file of Commissioner of Income Tax (Appeals)-8, Hyderabad ITTA.No. 0296/ClT(A)-BlHydl2016-17 preferred against the Order dated 27-02-2Q17 onthe file of the Assistant Commissioner of lncome-Tax, TDS circle-2('l ), Hyderabad. Between: M/s. Vodafone Mobile Services Limited,, (Formerly M/s Vodafone South Limited), 1-10-178, Varun Towers - ll,6th Floor, Begumpet, Hyderabad - 500 016, Telangana. AND lA NO: 2 OF 2018 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the Respondent not to take any coercive steps for the recovery of the balance alleged demand, pending disposal of the above appeal. Cbunsel for the Appellant : Sri A V A Siva Kartikeya Counsel for the Respondent: Sri A Rama Krishan Reddy representing Sri A. Radha Krishna The Court delivered the following: Judgment ...AppellanUAppellant Assistant Commissioner of lncome Tax, TDS Circle - 2(1), Hyderabad, 4th Floor, A - Block, I.T. Towers, A.C. guards, Hyderabad - 500 004, Telangana. ...RespondenU ResPondent THE HONOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUSTICE I{AMAVARAPU RA\"'ESHWAR RAO I.T.T.A. No.281 0F 2018 JUDGMENT: (per Hon'ble Justice Sujog Paul) SriA.V.A.SivaKartikeya,learnedCounselfortheappellant, Sri A.Rama Krishna Reddy, learned counsel representing Sri Radha Krishna, learned counsel for the respondent' 2. With the consent, finallY heard' 3.Learnedcounselfortheappeilant'attheoulset'bypiacing reliance on the judgment of Hon'ble Supreme Court in Bharati Cellular Ltd., v. Assistant Commissioner of Income TaxL submits that singular point involved in this matter is no more res integra and curtains are frnally clrawn by the Hon'blc Supreme Court in the said case. It is submitted that the stand of the petitioner was tl)c activity in question is a sa1e, whereas the responclents are treating it to be 'commission\". Since, the Hon'ble Supreme Court has dt:cided the aforesaid poin*. in favour of assessees, the impugned order rnay be set aside. for the respondent fairly submitted that indeed covered by the recent ju