Vodafone Moves SC
Indian Legal News: Vodafone has moved its plea to the Supreme Court after the Bombay High Court ruled in favour of the Income Tax department. The HC in its verdict said that Vodafone is liable to pay a tax of Rs.12,000cr on its purchase, in 2007, of majority shares in Hutchison Essar.
The company said, “Vodafone remains convinced that there is no tax to pay on the Hutchison transaction and we will continue to defend this position vigorously.”
The Bombay High Court had repealed Vodafone’s petition against the Income Tax department’s claim last week.
The IT department claimed that, since the acquired assets of Hutchison were primarily based in India, it is liable to taxation on capital gains.
Vodafone bought a 66.98% stake worth $1.2 billon (about Rs 52,300 crore today) in May 2007.
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