Can interest be waived when substantial time is lost in litigation at different appellate forums?

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Short note of today's case law for quick reference:

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[2024] 466 ITR 387 (SC)

[IN THE SUPREME COURT OF INDIA]

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COMMISSIONER OF INCOME-TAX

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BHARTI HEXACOM LTD.

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MRS. B. V. NAGARATHNA and UJJAL BHUYAN JJ.

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May 17, 2024.

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1. The Supreme Court on appeals by the Department, having held that entry fee as well as the variable annual license fee paid by the assessees to the Department of Telecommunications under the 1999 Policy were capital in nature and that the High Court was wrong holding that the license fee paid or payable for the period upto 31.07.1999 i.e. the date set out in the 1999 Policy should be treated as capital and the balance amount payable on or after that date should be treated as revenue. (CIT v. Bharti Hexacom Ltd. [2023] 458 ITR 593 (SC)).

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2. On applications by one of the assessees seeking waiver of interest on the tax demand for the period subsequent to the commencement of the Telecom Policy of the year 1999 on the ground that a heavy burden would now be on the assessees as from the assessment year 2000-01 onwards the tax demand would have to be recomputed and met.

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3. Held, allowing the application (and directing that this would apply to all assessees in the appeals before the SC), that since the judgment of the court was dated 16.10.2023 and having regard to the Telecom Policy, which commenced from the year 1999, and bearing in mind the peculiar facts of this case and having regard to the lapse of time in litigation before the High Court and SC, the payment of interest for the period for which the tax demand was now to be met in respect of these cases would stand waived.

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4. While disposing of identical matters pending before the High Courts, Tribunals and statutory appeals, those courts, Tribunals and authorities may bear in mind this order vis-a-vis the interest aspect.

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5. However, this order shall not be a precedent in any other case.