Most of the surface plasmon resonance (SPR) based photonic crystal fiber (PCF) polarization filters have been designed with gold film/wire despite the adhesion of gold to silica is uncertain. In this paper, we use a thin layer of indium-tin-oxide (ITO) in between the polished plane of the D-shaped PCF and gold (Au) film, which assists in adhering. By optimizing the designed parameter, the coupling between the surface plasmon polariton (SPP) mode and core mode is attained at 1.55 μm operating wavelength that ensures the filtering ability of the proposed fiber at C-band optical communication window. The performance characteristics of the filter are analyzed by full-vector finite element method (FEM). Numerical results reveal that the inclusion of ITO layer enhances the filtering performance by increasing the attenuation loss of the undesired polarization mode. In addition, owing to the sharp loss peak response, the full width half maximum (FWHM) is achieved of only 30 nm. Such small FWHM makes the proposed fiber promising as a perfect polarization filter at 1.55 μm. Moreover, we reported extinction ratio as high as 806.52 dB and maximum insertion loss only 0.33 dB. Such appealing performance makes this filter widely applicable in communication networks and integrated optical devices especially in the C-band optical communication window.