Karnataka High Court
Emirates Telecommunications Group ... vs The Deputy Commissioner Of Income Tax on 7 March, 2024
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2024:KHC:9937
WP No. 4539 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 7TH DAY OF MARCH, 2024
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 4539 OF 2024 (T-IT)
BETWEEN:
EMIRATES TELECOMMUNICATIONS GROUP COMPANY
(ETISALAT GROUP) P.J.S.C. (ETISALAT)
(EARLIER KNOWN AS EMIRATES
TELECOMMUNICATIONS CORPORATION)
E AND HEAD OFFICE BUILDING -A
INTERSECTION OF SHEIKH ZAYED
THE 1ST STREET SHEIKH RASHID
BIN SAEED AL MAKTOUM ROAD
PO BOX 3838, ABU DHABI, UAE,
REPRESENTED BY ITS AUTHORISED SIGNATORY
MR. MOHAMED KARIM BENNIS
...PETITIONER
(BY SRI. HERPREET SINGH AJMANI FOR
SMT. PRERNA PONAPPA.,ADVOCATES)
AND:
1. THE DEPUTY COMMISSIONER OF INCOME TAX
INTERNATIONAL TAXATION, CIRCLE-2(2)
ROOM NO.430, 4TH FLOOR, BMTC BUILDING,
Digitally signed 80 FT ROAD, 6TH BLOCK, KORAMANGALA,
by BENGALURU - 560 095.
LEELAVATHI S
R
2. THE PR. CHIEF COMMISSIONER
Location: HIGH OF INCOME TAX (INTL TAXN), NEW DELHI.
COURT OF
KARNATAKA ...RESPONDENTS
(BY SRI.M.DILIP .,ADVOCATE)
THIS W.P IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION
OF INDIA PRAYING TO i) QUASH THE NOTICE UNDER SECTION 148
DATED 07/04/2022 BEARING DIN AND NOTICE NO. ITBA/AST/S/148.1/2022-
23/1042634288(1) (ANNEXURE-C) ISSUED BY THE ASSESSING OFFICER
INITIATING REASSESSMENT PROCEEDINGS IN THE CASE OF THE
PETITIONER FOR AY 2018-19 AND ETC.
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NC: 2024:KHC:9937
WP No. 4539 of 2024
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE OURT
MADE THE FOLLOWING:
ORDER
In this petition, petitioner seeks for the following reliefs:-
(1) Issue a writ of certiorari or similar writ, order or
direction quashing the notice under Section 148 dated
07.04.2022 bearing DIN and Notice no.
ITBA/AST/S/148_1/2022- 23/1042634288(1) (ANNEXURE
-C) issued by the Assessing Officer initiating reassessment
proceedings in the case of the Petitioner for AY 2018-19;
(ii) Issue a writ of certiorari or similar writ, order or
direction quashing the order dated 07.04.2022 under
Section 148A(d) bearing DIN and Notice no.
ITBA/AST/F/148A/2022- 23/1042634122(1) (marked as
ANNEXURE - B) passed by the Assessing Officer under
section 148A(d) of the Act for AY 2018- 19;
(iii) Issue any other writ, order or direction as
deemed fit and appropriate by this Hon'ble Court in the
facts and circumstances of the case, in the interests of
justice and equity.
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
NC: 2024:KHC:9937
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
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 22.03.2022 vide Annexure-A as well as the impugned order
and impugned Notice both dated 07.04.2022 vide Annexures-B and
C 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
NC: 2024:KHC:9937
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
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 at Annexure - A dated
22.03.2022, impugned order at Annexure-B dated 07.04.2022 and
impugned notice at Annexure-C dated 07.04.2022 issued / passed
by the respondents are hereby quashed.
Sd/-
JUDGE
DHA/SRL
