Karnataka High Court
Deputy Commissioner Of Income Tax vs M/S Belgacom International Carrier ... on 2 September, 2024
Author: S.G.Pandit
Bench: S.G.Pandit
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NC: 2024:KHC:35630-DB
WA No. 668 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. 668 OF 2024 (T-IT)
BETWEEN:
1. DEPUTY COMMISSIONER OF INCOME TAX
(INTERNATIONAL TAXATION),
CIRCLE-2(1), ROOM NO. 441,
4TH FLOOR, BMTC BUILDING,
KORAMANGALA,
BENGALURU-560 095.
2. PRINCIPLE CHIEF COMMISSIONER OF
INCOME TAX
C-3, DONA CYNTHIA,
PRIMROSE ROAD,
Digitally signed BENGALURU-560 025.
by
MARIGANGAIAH
PREMAKUMARI 3. THE UNION OF INDIA
Location: HIGH THROUGH ITS REVENUE SECRETARY,
COURT OF
KARNATAKA DEPARTMENT OF REVENUE,
MINISTRY OF FINANCE,
128/A, NORTH BLOCK,
NEW DELHI-110 001.
...APPELLANTS
(BY SRI. SANMATHI E. I., ADV.)
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NC: 2024:KHC:35630-DB
WA No. 668 of 2024
AND:
M/S. BELGACOM INTERNATIONAL
CARRIER SERVICES S A
BELGIUM
REP. BY AUTHORIZED SIGNATORY.
...RESPONDENT
THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF
THE KARNATAKA HIGH COURT ACT PRAYING TO SET
ASIDE THE ORDER DATED 27.10.2023 IN WP
NO.5110/2021 (T-IT) PASSED BY THE LEARNED SINGLE
JUDGE.
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.
2. Perused the appeal papers.
NC: 2024:KHC:35630-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."
NC: 2024:KHC:35630-DB
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 orders 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
