Hon’ble Supreme Court waives interest on tax demand – Landmark Ruling

By Vikash Agarwal

In a significant judgment, Hon’ble SC ruled in favour of the telecom companies waiving the interest on tax demand for the period subsequent to the commencement of the new Telecom Policy, 1999.

This ruling is unique as it considers the burden on the Assessees due to the recomputation of the tax demand (from AY 2000-2001 onwards) pursuant to the Hon’ble SC delivering the judgment in favour of the revenue.

Accordingly, the SC has waived the payment of interest for the intervening period, considering the lapse of time in litigation before the various courts.

Can we seek similar relief w.r.t. the liability arising from the secondment ruling of the Hon’ble SC?

However, it’s important to note that the SC has categorically mentioned in the order not to make this case a precedent.

Be it as it may, an important takeaway is that the relief provided by Hon’ble SC emphasizes fairness and discretion in legal matters which could have significant implications for similar instances in the future. Personally, I believe that the law itself should exclude the period spent before the courts in litigation when levying interest.