Voicetec Sys Limited V. Deputy Commissioner of Income Tax, Circle 2(1), Bengaluru and Principal Chief Commissioner of Income Tax, (International Taxation), New Delhi

WP/16247/2023

AI Insights

The case involves Voicetec Sys Limited, a company incorporated in England, which filed a writ petition against the Deputy Commissioner of Income Tax and the Principal Chief Commissioner of Income Tax, challenging reassessment proceedings and subsequent notices and orders issued against them. The petitioner sought to quash these proceedings under Articles 226 and 227 of the Constitution of India, citing similar cases where the court had ruled in favor of the assessee regarding the taxability of monies paid to non-resident entities. The respondents did not contest the applicability of the cited judgments to the present case.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 796176 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 30-07-2024
• 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: Articles 226 and 227 of the Constitution of India, Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: E I SANMATHI
• Assessee Lawyers: RAVI RAGHAVAN; SRIDATTHA CHARAN; DEVASHISH JAIN
• Keywords: Income Tax; Non-resident entities; Reassessment proceedings; Writ of Certiorari
• Section: 148; 148A

Judgement Text

" - 1 - NC: 2024:KHC:30086 WP No. 16247 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 16247 OF 2023 (T-IT) BETWEEN: VOICETEC SYS LIMITED 790 UXBRIDGE ROAD, HAYES MIDDLESEX, UB4 ORS, ENGLAND, UNITED KINGDOM REPRESENTED BY RANGANATHAN KANNAN DIRECTOR INCORPORATED UNDER COMPANIES ACT, 1985 …PETITIONER (BY SRI. RAVI RAGHAVAN, SRI. SRIDATTHA CHARAN, SRI. DEVASHISH JAIN, ADVOCATES) AND: DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 2(1), BENGALURU BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU, KARNATAKA 560 095 BANGALORE. [e-mail]. 2. PRINCIPAL CHIEF COMMISSIONER OF INCOME TAX, (INTERNATIONAL TAXATION), NEW DELHI - 110 002 …RESPONDENTS (BY SRI. E.I. SANMATHI, ADVOCATE) Digitally signed by YAMUNA K L Location: High Court of Karnataka - 2 - NC: 2024:KHC:30086 WP No. 16247 of 2023 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH, CANCEL AND SET ASIDE THE PRESENT REASSESSMENT PROCEEDINGS AND CONSEQUENTLY THE FOLLOWING NOTICES AND ORDERS AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, petitioner is seeking for the following reliefs:- \"(a) Issue a writ of certiorari or any other appropriate writ, order, or direction under Article 226 of the Constitution of India to quash, cancel and set aside the present reassessment proceedings and consequently the following notices and orders: i. Impugned Notice, dated 23.03.2023, bearing DIN: ITBA/ASF/F/148A(SCN)/2022- 23/1051166794(1) (enclosed as Annexure- A1) ii. Impugned Order, dated 12.04.2023, bearing DIN and Notice No.: ITBA/AST/F/148A/2023-24/1052024407(1) (enclosed as Annexure-A2) and - 3 - NC: 2024:KHC:30086 WP No. 16247 of 2023 iii. Notice under Section 148, dated 12.04.2023, bearing DIN and Notice No.: ITBA/AST/S/148_1/2023-24/1052024747(1) (enclosed as Annexure-A3) (b) Issue any other appropriate writ or order or direction, directing the Respondent No.1 not to impose any income addition for the year under consideration. (c) Pass such further order(s) and other reliefs as the nature and circumstances of the case may require.\" 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 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 - 4 - NC: 2024:KHC:30086 WP No. 16247 of 2023 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 23.03.2023 at Annexure-A1, the impugned order dated 12.04.2023 at Annexure-A2 and the impugned notice dated 12.04.2023 at Annexures-A3 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 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 - 5 - NC: 2024:KHC:30086 WP No. 16247 of 2023 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 dated 23.03.2023 at Annexure-A1, the impugned order dated 12.04.2023 at Annexure-A2 and the impugned notice dated 12.04.2023 at Annexures-A3 are issued / passed by the respondents are hereby quashed. Sd/- (S.R.KRISHNA KUMAR) JUDGE BKN List No.: 1 Sl No.: 29 "