Centre moves SC seeking review of Vodafone tax case verdict
The Centre on Friday moved the Supreme Court seeking a review of its verdict holding that the Indian Income Tax Department does not have jurisdiction to levy Rs 11,000 crore as tax on the overseas deal between Vodafone International Holdings and Hutchison Group.
The review petition settled by Solicitor General Rohinton Nariman has contended there was a need for reconsidering the Janaury 20 verdict as the law on deciding the case has not been correctly interpreted.
The petition is listed for hearing on February 27. The court had on January 20 allowed Vodafone's appeal and had quashed the Bombay High Court verdict which had upheld the decision to levy tax on the overseas deal.
The apex court held that Vodafone's transaction with Hong Kong-based Hutchison Group was a 'bonafide' FDI which fell outside the tax jurisdiction of the Indian authorities.
A bench headed by Chief Justice S H Kapadia had held that the offshore transaction was a 'bonafide structured FDI investment' into India, which fell outside India's territorial tax jurisdiction.
It had asked the I-T Department to return Rs 2,500 crore deposited by Vodafone, in compliance of its earlier interim order, within two months along with four per cent interest from the date of withdrawal of money by the tax department. It had also asked the Supreme Court registry to return within four weeks the bank guarantee of Rs 8,500 crore given by the telecom major.
Post new comment