SLP on section 9(1)(vi) and Article 12 India-USA DTAA distribution revenue dismissed due to 464-day delay

SC dismissed the assessee's Special Leave Petition challenging the HC's treatment of distribution revenue under section 9(1)(vi) and Article 12 of the India-USA DTAA. The HC had relied on the Mutual Agreement Procedure outcome, under which the assessee accepted 10% of advertising and subscription revenue as taxable in India, and this was not disputed. The SC held that the assessee failed to furnish any plausible or bona fide explanation for the inordinate delay of 464 days in filing the petition and therefore dismissed it solely on the ground of delay.

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The Supreme Court considered a Special Leave Petition (SLP) filed with a delay of 464 days. The Court examined whether there was any "plausible and bona fide explanation" sufficient to justify condonation of this "inordinate delay." Finding none, the Court declined to exercise its discretion under limitation and condonation principles. Emphasizing that unexplained or inadequately explained prolonged delay cannot be condoned as a matter of course, the Court held that the petitioner had failed to demonstrate sufficient cause for not filing the SLP within the prescribed period. Consequently, the SLP was "dismissed on the ground of delay," and all pending interlocutory applications were disposed of.

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