The Deputy Commissioner Of Income Tax vs Orange 78 Rule Olivaier De Serres Paris
2024 Latest Caselaw 22133 Kant

Karnataka High Court

The Deputy Commissioner Of Income Tax vs Orange 78 Rule Olivaier De Serres Paris on 2 September, 2024

Author: S.G.Pandit

Bench: S.G.Pandit

                                             -1-
                                                      NC: 2024:KHC:35644-DB
                                                       WA No. 1311 of 2024




                   IN THE HIGH COURT OF KARNATAKA AT BENGALURU
                        DATED THIS THE 2ND DAY OF SEPTEMBER, 2024
                                          PRESENT
                           THE HON'BLE MR JUSTICE S.G.PANDIT
                                            AND
                          THE HON'BLE MR JUSTICE C.M. POONACHA
                           WRIT APPEAL NO. 1311 OF 2024 (T-IT)
                   BETWEEN:

                   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,
Digitally signed        BENGALURU- 560095.
by
MARIGANGAIAH
PREMAKUMARI        3.   THE CENTRAL BOARD OF DIRECT TAXES
Location: HIGH          DEPARTMENT OF REVENUE NORTH BLOCK,
COURT OF                CENTRAL SECRETARIAT,
KARNATAKA
                        NEW DELHI- 110001
                        REP. BY ITS CHAIRMAN.
                                                                ...APPELLANTS
                   (BY SRI. SANMATHI E I.,ADVOCATE)

                   AND:

                   1.   ORANGE 78 RULE OLIVAIER DE SERRES PARIS
                        (FRANCE) REPRESENTED BY ITS AUTHORISED
                        SIGNATOR VODAFONE IDEA LIMITED
                                 -2-
                                          NC: 2024:KHC:35644-DB
                                           WA No. 1311 of 2024




     10TH FLOOR, BIRLA CENTURION
     CENTURION MILLS COMPOUND
     PANDURANG BUDKKAR MARG WORLI
     MUMBAI-400030.

2.   VODAFONE IDEA LIMITED
     10TH FLOOR, BIRLA CENTURION,
     CENTURION MILLS COMPOUND,
     PANDURANG BUDKKAR MARG,
     WORLI, MUMBAI -400030
     REP. BY ITS DIRECTORS.
                                        ...RESPONDENTS
(BY SRI.HARPRITH SINGH AJMANI ., ADVOCATE)

     THIS APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT PRAYING TO 1.SET ASIDE THE
ORDER DATED 23/11/2023 IN WP NO.17055/2023 PASSED BY
THE LEARNED SINGLE JUDGE AND    2. GRANT SUCH OTHER
ORDER.

    THIS APPEAL, COMING ON FOR ORDERS, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM:     HON'BLE MR JUSTICE S.G.PANDIT
           AND
           HON'BLE MR JUSTICE C.M. POONACHA

                     ORAL JUDGMENT

(PER: HON'BLE MR JUSTICE S.G.PANDIT)

Heard Sri. E.I.Sanmathi, learned counsel for the

appellants and learned counsel Sri.Harprith Singh Ajmani for

respondents.

2. Perused the appeal papers.

NC: 2024:KHC:35644-DB

3. The question involved in the appeal is as to whether

interconnect service charges paid would amount to royalty.

4. The above issue was considered by a Co-ordinate

Bench of this court in ITA.No.160/2015 and connected appeals.

By judgment dated 14.07.2023 it is held that interconnect

service charges would not constitute royalty. Paragraph No.21

of the judgment reads as follows:

"The third question is, whether the payments made to NTOS for providing interconnect services and transfer of capacity in foreign countries is chargeable to tax as royalty. It was argued by Shri.Pardiwala, that for subsequent years in assessee's own case, the ITAT has held that tax is not deductable when payment is made to non-resident telecom operator. This factual aspect is not refuted. Thus the Revenue has reviewed its earlier stand for the subsequent assessment years placing reliance on Viacom etc35, rendered by the ITAT. In that view of the matter this question also needs to be answered against the Revenue."

5. Learned Single Judge has also placed reliance on

the above decision of the Co-ordinate Bench. Therefore, we do

not find any infirmity in the order under challenge.

NC: 2024:KHC:35644-DB

6. Following the decision of Co-ordinate Bench dated

14.07.2023 in ITA No.160/2015 and connected appeals, the

above appeal stands dismissed.

SD/-

(S.G.PANDIT) JUDGE

SD/-

(C.M. POONACHA) JUDGE

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