2025 (4) TMI 615 - SCH - Income Tax

Supreme Court Rejects Special Leave Petition, Affirms Prior Ruling on Tax Authority's Corporate Dispute with Procedural Flexibility

SC dismissed SLP on merits, following precedent from prior case involving tax authority and corporate entity. Court condoned procedural delay and disposed ... TDS u/s 195 - Royalty or FTS or business profits - payment made to NTOs is towards interconnectivity charges - as decided by HC [2023 (7) TMI 1164 - KARNATAKA HIGH COURT] scope of Section 195(2) it is important to note that the tax which is required to be deducted at source is deductible only out of the chargeable sum. This is the underlying principle of Section 195 - Thus it is clear that an assessee is entitled to take the benefit under a DTAA between two countries. Hence, the ITAT’s view that DTAA cannot be considered in proceedings under Section 201 of the Act is tenable. HELD THAT:- Following the order passed in Special Leave Petition in Deputy Director of Income Tax and another vs. M/s.Vodafone Idea Limited [2024 (10) TMI 601 - SC ORDER], we dismiss these Special Leave Petitions also on merits. The Supreme Court, presided over by Hon'ble Mrs. Justice B. V. Nagarathna and Hon'ble Mr. Justice Satish Chandra Sharma, addressed the matter involving the petitioner represented by Mr. N Venkatraman, A.S.G., and others, against the respondent represented by Mr. Sachit Jolly, Sr. Adv., and his team.The Court condoned the delay in the proceedings. Referring to a precedent set in the order dated 26.07.2024 in Special Leave Petition (Civil) Diary No(s). 24154 of 2024 (Deputy Director of Income Tax and another vs. M/s. Vodafone Idea Limited), the Court dismissed these Special Leave Petitions on merits. All pending applications related to this case were also disposed of.