SC slams IT department for filing cases after time limit

Coming down heavily on the revenue authorities for their tendency to file petitions "belatedly" in courts and tribunals, the Supreme Court on Tuesday asked the income-tax department to put a proper litigation policy in place since it is the "biggest litigant" in the country.

The court rejected an I-T department plea against Bharti Airtel Ltd after noting that there has been a delay of more than four years in filing an appeal before it.

"You succeed in one stray case and decide to file cases without any sufficient cause", including cases which have been already closed, a bench led by Justice BV Nagarathna told the commissioner of income tax (international tax), Delhi.


"The point is you (I-T department) have accepted the judgement of the Income Tax Appellate Tribunal, Bangalore, which favoured you. After succeeding there in some stray case, then you reopen (other cases) including this (Airtel). This is a typical practice of revenue. You reopen everything. It is only after the appellate tribunal ruled in your favour, you, as an afterthought, chose to file the appeal against Airtel," the bench said.

It was hearing the I-T commissioner's appeal against an ITAT order in 2016 where it held that the interconnection usage charges paid to foreign telecom operators are neither 'royalty' nor 'fees' for technical services.

Later in 2020, the department moved the Delhi HC, which rejected the department's appeal on the grounds of delay of four years and 100 days in filing the appeal, while the time limit for such appeals is only 120 days under the Income-Tax Act.