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.
