Of Income Tax And Another v. M/S. Wipro Ltd. In

Digitally signed byCHAYA S ALocation: HIGHCOURT OFKARNATAKA and 163 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30 DAY OF JANUARY, 2023 PRESENT THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR AND THE HON'BLE MR. JUSTICE RAMACHANDRA D. HUDDAR INCOME TAX APPEAL NO. 160 OF 2021 C/W INCOME TAX APPEAL NOS. 162 OF 2021 AND 163 OF 2021 IN ITA NO.160/2021BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX INTERNATIONAL TAXATION, 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU 560095. INTERNATIONAL TAXATION, 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU 560095. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX INTERNATIONAL TAXATION, CENTRAL CIRCLE 1 (1), 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU – 560095. INTERNATIONAL TAXATION, CENTRAL CIRCLE 1 (1), 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU – 560095. …APPELLANTS (BY SRI. ARAVIND K V., SENIOR STANDING COUNSEL) AND: 1. M/S AD2PRO MEDIA SOLUTIONS PVT LTD NO.10, 2 FLOOR, BANNERGHATTA ROAD, J P NAGAR, III PHASE, BENGALURU 560078, PAN …RESPONDENT (BY SRI. CHANDRASHEKAR V., ADVOCATE) THIS APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT, 1961, ARISING OUT OF ORDER DATED 20.03.2020 PASSED IN ITA NO.1924/BANG/2019, FOR THE ASSESSMENT YEAR 2013-14. IN ITA NO.162 OF 2021 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX INTERNATIONAL TAXATION, 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560095. INTERNATIONAL TAXATION, 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560095. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX INTERNATIONAL TAXATION, CIRCLE 1 (1), 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU – 560095. INTERNATIONAL TAXATION, CIRCLE 1 (1), 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU – 560095. …APPELLANTS (BY SRI. ARAVIND K V., SENIOR STANDING COUNSEL) AND: 1. M/S AD2PRO MEDIA SOLUTIONS PVT LTD NO.10, 2 FLOOR, BANNERGHATTA ROAD, J P NAGAR, III PHASE, BENGALURU - 560078, PAN NO.10, 2 FLOOR, BANNERGHATTA ROAD, J P NAGAR, III PHASE, BENGALURU - 560078, PAN …RESPONDENT (BY SRI. CHANDRASHEKAR V., ADVOCATE) THIS APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT, 1961, ARISING OUT OF ORDER DATED 20.03.2020 PASSED IN ITA NO.1925/BANG/2019, FOR THE ASSESSMENT YEAR 2014-15. IN ITA NO.163 OF 2021 BETWEEN: 1. THE COMMISSIONER OF INCOME-TAX INTERNATIONAL TAXATION, 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560095. INTERNATIONAL TAXATION, 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU - 560095. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX INTERNATIONAL TAXATION, CIRCLE 1 (1), 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU – 560095. INTERNATIONAL TAXATION, CIRCLE 1 (1), 4 FLOOR, BMTC BUILDING, 80 FEET ROAD, KORAMANGALA, BENGALURU – 560095. …APPELLANTS (BY SRI. ARAVIND K V., SENIOR STANDING COUNSEL) AND: 1. M/S AD2PRO MEDIA SOLUTIONS PVT LTD NO.10, 2 FLOOR, BANNERGHATTA ROAD, J P NAGAR, III PHASE, BENGALURU - 560078, PAN NO.10, 2 FLOOR, BANNERGHATTA ROAD, J P NAGAR, III PHASE, BENGALURU - 560078, PAN …RESPONDENT (BY SRI. CHANDRASHEKAR V., ADVOCATE) THIS APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT, 1961, ARISING OUT OF ORDER DATED 20.03.2020 PASSED IN ITA NO.1926/BANG/2019, FOR THE ASSESSMENT YEAR 2015-16. ITA No. 160 of 2021C/W ITA Nos. 162 of 2021and 163 of 2021 THESE APPEALS COMING ON FOR FINAL HEARING, THIS DAY, P.S. DINESH KUMAR J., DELIVERED THE FOLLOWING: JUDGMENT 1.These three appeals by the Revenue challenging the …APPELLANTS (BY SRI. ARAVIND K V., SENIOR STANDING COUNSEL) AND: 1. M/S AD2PRO MEDIA SOLUTIONS PVT LTD NO.10, 2 FLOOR, BANNERGHATTA ROAD, J P NAGAR, III PHASE, BENGALURU - 560078, PAN NO.10, 2 FLOOR, BANNERGHATTA ROAD, J P NAGAR, III PHASE, BENGALURU - 560078, PAN …RESPONDENT (BY SRI. CHANDRASHEKAR V., ADVOCATE) THIS APPEAL IS FILED UNDER SECTION 260-A OF INCOME TAX ACT, 1961, ARISING OUT OF ORDER DATED 20.03.2020 PASSED IN ITA NO.1926/BANG/2019, FOR THE ASSESSMENT YEAR 2015-16. ITA No. 160 of 2021C/W ITA Nos. 162 of 2021and 163 of 2021 THESE APPEALS COMING ON FOR FINAL HEARING, THIS DAY, P.S. DINESH KUMAR J., DELIVERED THE FOLLOWING: JUDGMENT 1.These three appeals by the Revenue challenging the Orders passed by the Income-Tax Appellate Tribunal, dated 20.03.2020 in ITA Nos. 1924/Bang/2019, 1925/Bang/2019, 1926/Bang/2019, have been admitted to consider following two substantial questions: " 1. Whether on the facts and in the circumstances of the case, it can be said that provisions of Double Taxation Avoidance Agreements will override provisions of Income Tax Act? 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in interpreting the CBDT Circular No.3/2018 in a manner as to exclude the tax effect on interest under section 201(1A) of the Act was by way of a single order and that interest under section 201(1A) is independent of tax liability under Section 201(1) and is not interest thereon?" 2.At the outset, Sri.V.Chandrashekar learned Advocate for the assessee submits that the first question is covered against the Revenue by the decision of this Court in COMMISSIONER OF INCOME TAX AND ANOTHERVs. M/S. WIPRO LTD. in - 5 - ITA No. 160 of 2021C/W ITA Nos. 162 of 2021and 163 of 2021 ITA No.181/2019 and connected cases decided on 29.11.2022 and the second question is covered against Revenue in COMMISSIONER OF INCOME TAX AND ANOTHERVs. AVESTAGENOME PROJECT in ITA No.156/2021 decided on 03.01.2023. 3.The said submission is not disputed by Sri. K.V. Aravind, learned Senior Standing Counsel for the appellant/Revenue. Hence, appeals are dismissed. The questions of law are answered in favour of assessee and against the Revenue. No costs. Sd/- JUDGE Sd/- JUDGE sac*