Wa/692/2024 Of The Deputy Commissioner Of Income Tax v. Vodafone Qatar Pqsc

Digitally signedbyMARIGANGAIAHPREMAKUMARILocation: HIGHCOURT OFKARNATAKA NC: 2024:KHC:35632-DBWA No. 692 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2 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. 692 OF 2024 (TIT) BETWEEN: 1. THE DEPUTY COMMISSIONER OF INCOME TAX ASSESSMENT CIRCLE 2(1) BMTC BUILDING, 80FT ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560095. ASSESSMENT CIRCLE 2(1) BMTC BUILDING, 80FT ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560095. 2. THE COMMISSIONER OF INCOME TAX-2 BMTC BUILDING, 80FT ROAD, 6 BLOCK, BMTC BUILDING, 80FT ROAD, 6 BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU-560095. KORAMANGALA, BENGALURU-560095. …APPELLANTS (BY SRI. SANMATHI E. I., ADV.) AND: 1. VODAFONE QATAR PQSC MASHEIREB DOWNTOWN DOHA, ZONE 3, STREET 981, BUILDING 2, 4 FLOOR, PO BOX 27727, DOHA, QATAR, PAN- , (REP. BY AUTHORIZED SIGNATORY SHEIKH HAMAD ABDULLA J A AL THANI, AGE 43 YEARS, OCC: SERVICE, R/O MSHEIREB, DOWNTOWN DOHA, ZONE 3, STREET, 981, BUILDING 2, 4 FLOOR, PO BOX 27727 DOHA QATAR). 2. VODAFONE IDEA LIMITED MARUTI INFOTECH CENTRE, 11/1, 12/1, KORAMANGALA, AMARJYOTHI LAYOUT, BENGALURU-560071 REPRESENTED BY ITS DIRECTOR. (BY SRI.ANKUR P.D., ADV. FOR SRI K.R.VASUDEVAN, ADV.) …RESPONDENTS THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO 1) TO SET ASIDE THE ORDER DATED 02.11.2023 IN WRIT PETITION NO.5112 OF 2023 (T-IT) PASSED BY THE LEARNED SINGLE JUDGE AND 2) GRANT SUCH OTHER ORDER AS THIS COURT DEEMS FIT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, IN THE INTEREST OF EQUITY AND JUSTICE. 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.Ankur P.D. for respondents. NC: 2024:KHC:35632-DB 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 not refuted. Thus the Revenue has reviewed its earlier stand for the subsequent assessment years placing reliance on Viacom etc[35], 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 List No.: 1 Sl No.: 22