CIT Vs IBASIS Netherlands B.V. (Supreme Court of India)
In CIT Vs IBASIS Netherlands B.V., the Supreme Court dismissed the Special Leave Petition filed by the Revenue on the ground of an inordinate delay of 503 days, holding that the explanation provided did not constitute sufficient cause. Consequently, the petition was rejected solely on limitation grounds.
During the proceedings, it was submitted that the issue involved was substantially similar to earlier cases, including one decided in favour of the taxpayer. The Revenue was unable to distinguish the present case from the earlier decisions. The Court noted the principle that similarly placed litigants should be treated alike, relying on precedent emphasizing consistency in judicial outcomes where no distinguishing facts exist.
Accordingly, the matter was disposed of in terms of earlier judgments on identical issues. The Court reiterated that once relief has been granted in similar circumstances, the same cannot be denied in the absence of any differentiating factors.
Thus, the decision rests on two key aspects: rejection of the Revenue’s plea due to delay and application of the principle of parity with earlier rulings.
Read HC Judgment in this case: Income Tax Appeal Disposed Due to Similarity with Earlier Case and Lack of Distinguishing Facts
