Interconnectivity charges to non-resident telecom operators were treated as outside TDS, and the delay plea failed.

Payments made to non-resident telecom operators for interconnectivity charges were treated as outside the scope of tax deduction at source, following the principle applied in M.I. Limited that no tax is deductible on such payments. The Special Leave Petitions were also delayed by 308, 457 and 473 days, and the reasons offered for condonation were held insufficient in law; the delay applications were dismissed. On merits, the petitions were dismissed as well.

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Outcome: The applications for condonation of delay were dismissed for want of sufficient cause, delay in refiling was condoned, and the Special Leave Petitions were dismissed on merits, with pending applications disposed of.

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