{"id":46269,"date":"2016-12-22T06:13:43","date_gmt":"2016-12-22T00:43:43","guid":{"rendered":"https:\/\/www.legalindia.com\/news\/?p=46269"},"modified":"2016-12-22T06:13:43","modified_gmt":"2016-12-22T00:43:43","slug":"delhi-hc-quashes-two-notices-bharti-airtel","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/news\/delhi-hc-quashes-two-notices-bharti-airtel","title":{"rendered":"Delhi HC quashes two IT notices to Bharti Airtel"},"content":{"rendered":"
\"Delhi
Delhi HC quashes two IT notices to Bharti Airtel<\/figcaption><\/figure>\n

In a relief to Bharti Airtel Ltd, Delhi High Court has quashed two show cause notices issued to the telecom major by the Income Tax (IT) department regarding interconnection charges payments made by the company to various foreign entities.<\/p>\n

A bench of Justices S Ravindra Bhat and Deepa Sharma allowed the petition filed by Bharti Airtel challenging the show cause notices of March 31, 2011 and March 5, 2012 issued to it by the department.<\/p>\n

The department, in its notice, had asked the company why should it not be deemed to be an “assessee-in-default” for making payments for interconnection charges to various foreign firms without deduction of tax under section 195 of IT Act.<\/p>\n

“Furthermore, the only reason cited by the respondent (IT department), i.e. administrative convenience, cannot outweigh the harsh nature of the consequence, which would expose resident payers to the onerous responsibility of maintaining books and documents for an uncertain period of time.<\/p>\n

“Given these considerations, the impugned notices are quashed. The writ petition is allowed in these terms; no costs,” the bench said in its verdict.<\/p>\n

The company had approached the high court contending that it is a telecommunications service provider and had engaged services of both domestic and foreign entities for providing interconnections to its users.<\/p>\n

It said that in engaging the services of offshore firms for interconnections, it had paid some charges to them.<\/p>\n

The company said the March 31, 2011 show cause notice related to financial year period 2001-2002 to 2010-2011, and the department had asked it why it should not be deemed to be an “assessee-in-default” for making payments to offshore firms for interconnection charges without deduction of tax.<\/p>\n

The firm contended that an additional show cause notice of November 22, 2011 was issued to it in which it was given an opportunity to explain as to why tax should not be charged under section 201(1A) of the IT Act on account of failure to deduct tax at source on payments of interconnect usage charges to foreign operators.<\/p>\n

Thereafter, a notice dated March 5, 2012 was issued on the same ground for financial years 2001-2002 to 2006-2007.<\/p>\n

While relying on two previous judgements, the company said that proceedings under section 201 cannot be initiated beyond a period of four years.<\/p>\n

The IT department countered this submission saying it was “untenable” as both the judgements relied upon did not make a distinction between payments made to domestic and foreign entities.<\/p>\n

( Source – PTI )<\/p>\n","protected":false},"excerpt":{"rendered":"

In a relief to Bharti Airtel Ltd, Delhi High Court has quashed two show cause notices issued to the telecom major by the Income Tax (IT) department regarding interconnection charges payments made by the company to various foreign entities. A bench of Justices S Ravindra Bhat and Deepa Sharma allowed the petition filed by Bharti […]<\/p>\n","protected":false},"author":38299,"featured_media":45587,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[11360,146,255,31987,5686,38306,117,80],"class_list":["post-46269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-law-news","tag-bharti-airtel","tag-court","tag-delhi-high-court","tag-featured","tag-income-tax-department","tag-interconnection-charges-payments","tag-law","tag-legal-news"],"yoast_head":"\nDelhi HC quashes two IT notices to Bharti Airtel - Legal News India - Supreme Court & High Court Updates<\/title>\n<meta name=\"description\" content=\"In a relief to Bharti Airtel Ltd, Delhi High Court has quashed two show cause notices issued to the telecom major by the Income Tax (IT) department - Get the latest legal news from the Supreme Court, High Courts, and government. 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The apex court also said that no coercive steps will be taken on the issue of penalty raised against Airtel\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23853,"url":"https:\/\/www.legalindia.com\/news\/respond-to-government-notice-court-tells-airtel","url_meta":{"origin":46269,"position":1},"title":"Respond to government notice, court tells Airtel","author":"Legal India Admin","date":"October 4, 2012","format":false,"excerpt":"The Delhi High Court Wednesday told telecom service provider Bharti Airtel to file within 60 days its response before DoT on a notice over 3G roaming services. Justice Rajiv Shakdher issued the direction while disposing of Airtel's plea challenging the show cause notice of department of telecommunications (DoT) to telecom\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44281,"url":"https:\/\/www.legalindia.com\/news\/hc-seeks-centre-reply-airtel-plea-refund","url_meta":{"origin":46269,"position":2},"title":"HC seeks Centre reply on Airtel plea for refund","author":"Legal India News","date":"August 8, 2016","format":false,"excerpt":"Delhi High Court today sought the Centre's response on telecom major Bharti Airtel's plea seeking refund of over Rs 2,500 crore, which includes disputed licence fees of Rs 399.92 crore paid by it for its Punjab circle for 1996-98 and interest on the amount. A bench of Chief Justice G\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"HC seeks Centre reply on Airtel plea for refund","src":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2016\/08\/airtel-300x166.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":35122,"url":"https:\/\/www.legalindia.com\/news\/executives-conduct-bharti-airtel-ltd-pay-rs-5-lakh","url_meta":{"origin":46269,"position":3},"title":"Executives’ conduct: Bharti Airtel Ltd to pay Rs. 5 lakh","author":"Legal India Admin","date":"September 7, 2014","format":false,"excerpt":"Irked by the \"\" of its executives towards customers, a consumer forum in Delhi has asked Bharti Airtel Limited to pay Rs. 5 lakh, saying it was a fit case for \"punitive damages\" to teach the company a \"lesson\". The New Delhi Consumer Disputes Redressal Forum, presided over by CK\u2026","rel":"","context":"In "Consumer Law News"","block_context":{"text":"Consumer Law News","link":"https:\/\/www.legalindia.com\/news\/category\/consumer-law-news"},"img":{"alt_text":"Bharti Airtel","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2014\/09\/Bharti-Airtel.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":22221,"url":"https:\/\/www.legalindia.com\/news\/airtel-to-pay-for-harassing-old-subscriber","url_meta":{"origin":46269,"position":4},"title":"Airtel to pay for harassing old subscriber","author":"Legal India Admin","date":"August 1, 2012","format":false,"excerpt":"The New Delhi District Consumer Disputes Redressal Forum imposed a fine of\u00a0\u00a0Rs 25,000 on Bharti Airtel for harassing a post-paid subscriber. Bharti Airtel has demanded fresh documents to verify his six-year-old connection and then stopping outgoing calls on his number. The telecom major has been held guilty of rendering deficient\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":27622,"url":"https:\/\/www.legalindia.com\/news\/sc-to-hear-pleas-of-sunil-mittal-airtel-tomorrow","url_meta":{"origin":46269,"position":5},"title":"SC to hear pleas of Sunil Mittal, Airtel tomorrow","author":"Legal India Admin","date":"April 8, 2013","format":false,"excerpt":"Bharti Airtel's plea challenging the Delhi High Court order giving its nod to the Centre's decision holding the 3G roaming pact of the telecom major as illegal will be hear by the bench headed by Chief Justice Altamas Kabir. The\u00a0Department of Telecommunications\u00a0(DoT) on March 15 had issued a notification restraining\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/p6H5Bf-c2h","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/46269","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/users\/38299"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/comments?post=46269"}],"version-history":[{"count":0,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/46269\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/media\/45587"}],"wp:attachment":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/media?parent=46269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/categories?post=46269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/tags?post=46269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}