New Delhi, Nov. 3 -- In a surprise move, the Income Tax Department withdrew its long-pending Rs.8,500-crore transfer pricing case against Vodafone India Services Pvt. Ltd. on Monday. The commissioner of income tax filed a plea to drop the case before a bench led by Chief Justice B.R. Gavai, which permitted the department to do so.

According to the Supreme Court's website, the matter had been pending since 2016 and was last listed for hearing in April 2017, but had seen no progress since then.

The withdrawal comes days after the Supreme Court ordered union government to extend relief to Vodafone Idea Ltd on issues relating to its adjusted gross revenue (AGR) dues. On Monday the Supreme Court clarified its 27 October order, saying the gov...