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Vodafone moves HC against transfer pricing issue

Last Updated: Thursday, February 23, 2012 - 23:11

New Delhi: UK-based telecom operator Vodafone on Thursday said it has filed a writ petition in the Bombay High Court challenging a tax demand made by the Income Tax Department.

The company, however, did not state what the nature of the tax demand was or the quantum of money sought by the authorities.

"As stated previously, Vodafone disagrees with the transfer pricing issues contained within the draft Assessment Order it received from the tax authority in December, 2011," Vodafone spokesperson said in an e-mailed statement.

"Given the recent Vodafone-Hutchison Supreme Court judgment contains several observations which appear to clearly favour Vodafone's position in this Transfer Pricing matter, on Tuesday, the company filed a writ petition challenging these jurisdictional issues," he added.

The spokesperson said these issues need to be addressed by the high court before the Assessment Order is finalised.

The Supreme Court 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.

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 also asked the Supreme Court registry to return within four weeks the bank guarantee of Rs 8,500 crore given by the telecom major.

The Centre on February 17 moved the Supreme Court seeking a review of verdict.

Through the USD 11.2 billion deal in May 2007, Vodafone had acquired 67 percent stake in the Hutchison-Essar Ltd (HEL) from Hong Kong-based Hutchison Group through companies based in the Netherlands and Cayman Island.

PTI

First Published: Thursday, February 23, 2012 - 23:11
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