M/s Vodafone Mobile Services Limited V. Deputy Commissioner of Income Tax (TDS)

ITTA/759/2017

AI Insights

The case revolves around an appeal by M/s. Vodafone Mobile Services Limited against the orders passed by the Income Tax Appellate Tribunal and the Commissioner of Income Tax (Appeals), which had treated certain transactions as 'commission' for tax purposes. The appellant contested this classification, arguing that the transactions were sales. The matter reached the High Court after the Supreme Court's decision in Bharati Cellular Ltd. v. Assistant Commissioner of Income Tax, which supported the appellant's position. Both parties agreed that the Supreme Court's judgment was applicable to the case at hand. Consequently, the High Court set aside the previous orders and allowed the appeal without costs.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 689735 (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 REDDY
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Appeal; Commission; Income Tax; Sale
• Section: 151; 2604

Judgement Text

"134111 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 SRI JUSTICE NAMAVARAPU RAJESHWAR RAO INCOME TAX TRIBUNAL APPEAL NO: 759 OF 2017 lncome Tax Tribunal Appeal filed under Section 2604 of the lncome Tax Act, 1961 against the Order dated 29.09.2017 passed in ITA No. 14O4tHt2O1S for the Assessment year 2015-2016 on the file of the lncome Tax Appellate Tribunal, Hyderabad Benches \"A\", Hyderabad preferred against the Order dated 09.10.2015 passed in ITA No. 0411/ClT(A)-8/Hydl2O15-16 on the file of the Office of the Commissioner of lncome Tax (Appeals) - 8, Hyderabad prefened against the Order dated 14.11.2014 passed in TAN HYDH00652B on the file of the Deputy Commissioner of lncome Tax Circle - 15(1), Hyderabad. Between: M/s. Vodafone Mobile Services Limlted, (Formerly M/s. vodafone South Limited) 1-10-178, Varun Towers-ll, 6th Floor, Begumpet, Hyderabad - 500 016 AND ...Appellant/Appellant Deputy Commissioner of lncome Tax (TDS), Circle - 15 (2) Hyderabad ...RespondenURespondent l.A. NO: 1 OF 2O17(ITTAMP. NO: 748 OF 2017 Petition under Section 1 5'l of 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 coereive steps for the recovery of the balance alleged demand, pending disposal of the above appeal. Counsel for the Appellant : Sri A.V.A. Siva Kartikeya Counsel for the Respondent : Sri A. Rama Krishna Reddy, representing Sri Radha Krishna The Court delivered the following: JUDGMENT THE HOITOURABLE SRI JUSTICE SUJOY PAUL AND THE HONOURABLE SRI JUS?ICE NAMAVARAPU RAJESHWAR RAO I.T.T.A.No.759 OF 2017 JUDGMENT: (per Hon'ble Justice Sujog Paul) . Sri A.V.A.Siva Kartikeya, learned counsel for the appeilant, Sri A.Rama Krishna Reddy, learned counsel representing Sri Radha Krishna, learned counsel for the respondent. 2. With the consent, finally heard. 3. Leamed counsel for the appellant, at the outset, by placing reliance on the judgment of Honble Supreme Court in Bharati Cellular Ltd., v. Asslstant Commlssioner of Income Taxr submits that singnlar point involved in this matter is no more res integra al:.d curtains are finally drawn by the Honble Supreme Court in the said case. It is submitted that the stand of the petitioner was the activity in question is a sale, whereas the respondents are treating it to be \"commission\". Since, the Hon'ble Supreme Court has decided the aforesaid point in favour of assessees, the impugned order may be set aside. 4 - learned counsel for the respondent fairly submitted that singular point above indeed covered by the recent judgment in Bharati Cellular Ltd's case supra. 5. Resultantly, the impugned order is set aside. I I ' 1zozal+ez trR 247 {sc) E 2 6. Accordingly, the Appeal is allowed. No costs. Interlocutory applications, if any pending, shall also stand closed //TRUE COPY// Sd/- M. VIJAYA BHASKER JOINT REGISTRAR -/ g/ SECTION OFFICER To, l The lncome Tax Appellate Tribunal, Hyderabad Benches \"A\" Hvderabad. z Ttie Commissioner of lncome Tax (Appeals) - 8 Hyderabad 3 The Deoutv commissioner of lncome Tax Circle - 15(1), Hyderabad 4 One CC'to Sri A.V.A. Siva Kartikeya' Advocate IOPUC] 5. One CC to Sr;$adha Krishna, Advocate [OPUC] 6. Two CD CoDies Ni b HIGH COURT DATED:0310912024 JUDGMENT ITTA.No.759 of 2017 ALLOWING THE ITTA WITHOUT COSTS i li i I I l, ,l .i oBJm{ zo25 t- ,' ] { DA * D I TCH (oF. .rH€ S7O ),OA ) E "