Revenue appealed a writ decision holding that interconnect service charges paid to non-resident telecom operators do not constitute royalty for tax purposes. The Division Bench followed the Co-ordinate Bench judgment in ITA No.160/2015 and dismissed the appeal.
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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:
Digitally signed by MARIGANGAIAH PREMAKUMARI Location: HIGH COURT OF KARNATAKA
THROUGH ITS REVENUE SECRETARY, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, 128/A, NORTH BLOCK, NEW DELHI-110 001.
…APPELLANTS
(BY SRI. SANMATHI E. I., ADV.)
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.
3. The question involved in the appeal is as to
whether interconnect service charges paid would amount to royalty.
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 nonresident 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.”
on the above decision of the Co-ordinate Bench.
Therefore, we do not find any infirmity in the orders under challenge.
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.: 20
1 issue framed by the court
Whether interconnect service charges paid to non-resident telecom operators amount to royalty chargeable to tax.
Colour shows how this judgement treated each authority
ITA No.160/2015 and connected appeals (judgment dated 14.07.2023)Followed¶4
1 provisions across 1 enactments
Deputy Commissioner of Income Tax (International Taxation), Circle-2(1), Bengaluru
Principal Chief Commissioner of Income Tax, Bengaluru
The Union of India
M/S. Belgacom International Carrier Services S A Belgium
S.G.Pandit
C.M.Poonacha
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
