India, Nov. 4 -- In a significant development, the Income Tax Department on Monday withdrew its long-pending Rs8,500-crore transfer pricing case against Vodafone India Services Pvt Ltd. The decision, which came as a surprise, effectively ends a dispute that has been ongoing for more than a decade.

The department's counsel appeared before a Supreme Court bench headed by Chief Justice B.R. Gavai, seeking permission to withdraw the case. The court granted the request, bringing closure to one of India's most prominent tax disputes involving a multinational telecom operator.

The origins of the case date back to the financial year 2008, when Vodafone India sold its call centre business, 3 Global Services, located in Ahmedabad, to Hutchison Wh...