Income Tax Dept cannot deviate from Stand Taken in Vodafone Case: ITAT Grants Relief to Bharti Airtel on Disallowance of Roaming Charges for Want of TDS

The Income Tax Appellate Tribunal (ITAT) has granted relief to Bharti Airtel, ruling that the Income Tax Department cannot deviate from its own established position regarding the treatment of interconnect and roaming charges. The tribunal applied the "principle of consistency," noting that the department had previously accepted in the Vodafone case that TDS is not required on such payments as they do not constitute fees for technical services. The department had disallowed roaming charges paid by Airtel for want of TDS deduction. However, the ITAT held that since the issue has been consistently decided in favor of telecom operators in numerous cases, including by the Supreme Court, the department cannot take a contrary stand in Airtel's case. This ruling provides significant relief to the telecom sector by ensuring a uniform and predictable tax treatment for roaming and interconnect charges, preventing arbitrary disallowances.