Supreme Court Dismisses Income Tax Dept’s Appeal Against IBASIS Netherlands in Telecom Levy Case due to 503-Day Filing Delay [Read Judgement]

In a recent ruling, the Supreme Court dismissed a Special Leave Petition (SLP) filed against IBASIS Netherlands B.V. in a cross-border telecom taxation dispute, citing an inordinate delay of 503 days in filing the appeal.

The case stemmed from a 2024 Karnataka High Court ruling that favored IBASIS Netherlands, a Dutch telecom carrier, in an assessment for the financial year 2017–18. The High Court had upheld the Income Tax Appellate Tribunal’s (ITAT) decision, noting that the matter was substantially similar to earlier cases involving Belgacom and Vodafone Idea, where relief had been granted. The court emphasized the principle of treating “like cases alike,” and found no distinguishing factors in the Revenue’s arguments.

Despite this, the appellant, the Commissioner of Income Tax, sought to challenge the High Court’s decision before the Supreme Court.

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The Karnataka High Court observed that the appeal against IBASIS Netherlands was substantially similar to earlier matters, including Commissioner of Income Tax v. Belgacom International Carrier Services SA and Vodafone Idea Ltd. v. Deputy Director of Income Tax (International Taxation).

The bench emphasized the principle that “like cases must be treated alike,” noting that the Revenue was unable to distinguish the present dispute from those precedents. Accordingly, the court disposed of the appeal in line with those rulings, extending similar relief to IBASIS Netherlands.

However, the apex court bench comprising Justices Pamidighantam Sri Narasimha and Alok Aradhe refused to entertain the petition due to the 503-day delay. The court held that the explanation offered did not constitute “sufficient cause” and dismissed the appeal purely on procedural grounds.

The bench observed, “Having heard learned Additional Solicitor General, we see no reason to condone the inordinate delay of 503 days in filing the Special Leave Petition as the explanation sought to be provided does not constitute sufficient cause.”

Accordingly, the Special Leave Petition stands dismissed on the Signature Not Verified ground of delay.

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