Case Law Details
Deputy Director of Income Tax & Anr. Vs Vodafone Idea Ltd. (Supreme Court of India)
In the case Deputy Director of Income Tax & Anr. vs. Vodafone Idea Ltd., the Supreme Court dismissed the Special Leave Petition filed by the Income Tax Department, affirming that Vodafone Idea is not required to deduct TDS on interconnectivity usage and bandwidth charges paid to non-resident telecom operators. The Court’s decision aligns with its earlier judgment in Engineering Analysis Centre of Excellence Private Ltd. v. The Commissioner of Income Tax (2022) and similar cases. The Supreme Court found that the petition was covered by the precedent set in these cases and that a review petition pending before the Court did not warrant reconsideration of the matter. The Court also noted the delay of 222 days in filing the Special Leave Petition and highlighted that the dismissal was based on the merits of the case and not solely on procedural delays. The Court’s decision reinforces the existing legal position on TDS obligations for payments to non-resident entities, as previously established in related judgments.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Delay condoned.
We have heard learned senior counsel for the petitioners and learned senior counsel for the respondent on caveat.
There is delay of 222 days in filing this Special Leave Petition.
During the course of submissions, we realised that this petition is covered by the judgment of this Court in Engineering Analysis Centre of Excellence Private Limited vs. Commissioner of Income Tax and Anr. reported in (2022) 3 SCC 321, which has been followed in other cases also. When this fact was brought to the notice of the learned senior counsel appearing for the petitioners, it was pointed out that in similar matters, this Court has issued notice.
The submission of learned senior counsel was also that there is a Review Petition pending before this Court and notice issued was in order. That is no reason for entertaining any subsequent matter having regard to the Explanation of Order XLVII Rule 1 of the Code of Civil Procedure, 1908.
At this stage, learned senior counsel for the respondent has brought to our notice order dated 23.04.2024 passed by a three-Judge Bench of this Court in Review Petition (C) Diary No(s).35475/2023 etc. titled “The Commissioner of Income Tax vs. GE India Technology Private Limited Etc.”, whereby a three-Judge Bench of this Court had dismissed the said Review Petitions both on the ground of delay as well as on merits.
In the circumstances, the Special Leave Petition is dismissed on merits following the aforesaid judgment/order.
Pending application(s), if any, shall stand disposed of.
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