SC upholds no tax deduction on payments to non-resident telecom operator under income tax rulesThe SC dismissed the special leave petition challenging the HC's ruling that tax is not deductible on payments made to a non-resident telecom operator for royalty and interconnect service charges, affirming no accrual of income in India. The Court upheld the HC's factual findings and relied on its prior decision in Deputy Director of Income Tax v. Vodafone Idea Ltd. All pending applications were disposed of accordingly.

The Supreme Court, through Hon'ble Justices B. V. Nagarathna and K. V. Viswanathan, after hearing counsel, granted condonation of delay. Following the precedent set in the order dated 26.07.2024 in SLP (C) Diary No.24154/2024 (Deputy Director of Income Tax & Anr. Vs. M/s. Vodafone Idea Ltd.), the Court dismissed the present special leave petition. All pending applications are disposed of accordingly.

Accrual of income in India or not? - royalty income - interconnect service charges - As decided by HC [2024 (9) TMI 1676 - KARNATAKA HIGH COURT] tax is not deductable when payment is made to non-resident telecom operator. This factual aspect is not refuted. No infirmity in the orders under challenge. HELD THAT:- Following the order passed by this Court in Deputy Director of Income Tax & Anr. Vs. M/s. Vodafone Idea Ltd [2024 (10) TMI 601 - SC ORDER] this special leave petition also stands dismissed. Pending application(s) shall also stand disposed of. THE DEPUTY COMMISSIONER OF INCOME TAX Versus M/s MAXIS INTERNATIONAL SDN BHD
Income Tax
2025 (7) TMI 1818 - SC Order - TMI
SUPREME COURT - SC
Dated:- 25-7-2025
SPECIAL LEAVE PETITION (CIVIL) DIARY NO(S). 34066/2025 - -
Income Tax
HON'BLE MRS. JUSTICE B. V. NAGARATHNA And HON'BLE MR. JUSTICE K. V. VISWANATHAN For the Petitioner : Mr. S Dwarakanath, A.S.G. Mr. Rupesh Kumar, Sr. Adv. Ms. Madhulika Upadhyay, AOR Mr. Udai Khanna, Adv. Mr. Khushal Kolwar, Adv. Mr. Chandra Kant Sharma, Adv. Mr. Rajat Vaishnaw, Adv. Mr. S.Vijay Adithya, Adv ORDER UPON hearing the counsel the Court made the following. Delay condoned. Following the order dated 26.07.2024 passed by this Court in SLP (C) Diary No.24154/2024 (Deputy Director of Income Tax & Anr. Vs. M/s. Vodafone Idea Ltd.), this special leave petition also stands dismissed. Pending application(s) shall also stand disposed of.
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