Karnataka High Court
The Deputy Commissioner Of Income Tax vs M/S Maxis International Sdn Bhd on 2 September, 2024
Author: S.G.Pandit
Bench: S.G.Pandit
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NC: 2024:KHC:35631-DB
WA No. 676 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. 676 OF 2024 (T-IT)
BETWEEN:
1. THE DEPUTY COMMISSIONER OF INCOME TAX
(INTERNATIONAL TAXATION)
CIRCLE-2(2) ROOM NO.430,
4TH FLOOR, BMTC BUILDING,
KORAMANGALA, BENGALURU-560095.
...APPELLANT
(BY SRI.SANMATHI.E.I., ADVOCATE)
AND:
1. M/S MAXIS INTERNATIONAL SDN BHD
A LEVEL 21, MENARA MAXIS,
KULA LUMPURCITY CENTRE-50088
REP. BY ITS AUTHORIZED REPRESENTATIVE
Digitally signed MR.NORMAN RONALD TREEBY
by
MARIGANGAIAH AGED ABOUT 69 YEARS
PREMAKUMARI
OFFICE AT: LEVEL 21, MENARA MAX KULA LUMPURA
Location: HIGH
COURT OF CITY CENTRE - 5088 KUALA LUMPUR
KARNATAKA
PO BOX 13447 50810 KUALA LUMPUR
...RESPONDENT
THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE
ORDER DATED 2.11.2023 IN WRIT PETITION No. 4966 OF 2022
(T-IT) PASSED BY THE HONBLE LEARNED SINGLE JUDGE AND
GRANT SUCH OTHER ORDERS AS THIS HONBLE COURT DEEMS
FIT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, IN
THE INTEREST OF EQUITY AND JUSTICE.
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NC: 2024:KHC:35631-DB
WA No. 676 of 2024
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
appellant.
2. Perused the appeal papers.
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
NC: 2024:KHC:35631-DB
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.
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
MPK
CT:bms
