Karnataka High Court
The Deputy Commissioner Of Income Tax vs Orange on 2 September, 2024
Author: S.G.Pandit
Bench: S.G.Pandit
-1-
NC: 2024:KHC:35641-DB
WA No. 1111 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. 1111 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., ADV.)
AND:
1. ORANGE
78 RUE OLIVAIRER DE SERRES PARIS (FRANCE)
REP. BY ITS AUTHORIZED SIGNATORY
-2-
NC: 2024:KHC:35641-DB
WA No. 1111 of 2024
VODAFONE IDEA LIMITED
10TH FLOOR, BIRLA CENTURION
CENTURION MILLS COMPOUND
PANDURANG BUDKKAR
MARG WORLI, MUMBAI-4000030
REP. BY ITS DIRECTORS
MR. BENOIT DELAPLACE.
2. VODAFONE IDEA LIMITED
10TH FLOOR, BIRLA CENTURION,
CENTURION MILLS COMPOUND,
PANDURANG BUDKKAR MARG,
WORLI, MUMBAI-400030
REPRESENTED BY ITS DIRECTORS.
...RESPONDENTS
(BY SRI.HARPRITH SINGH AJMANI, ADV.)
THIS APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH
COURT ACT PRAYING TO I)SET ASIDE THE ORDER DATED
23/11/2023 IN WP NO.17142/2023 PASSED BY THE LEARNED
SINGLE JUDGE AND II)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:35641-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:35641-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
MPK
CT:bms
