The CBDT, Chairman Shri N.B. Singh said that the decision of the Mumbai High Court in favour of the Income Tax Department in the case relating to transfer of securities of Vodafone Essar Limited has strengthened the hands of the Income Tax Department.
In a writ petition, the validity and legality of the notice issued by the Income Tax department was challenged. The Hon’ble High Court has dismissed the writ petition with cost.
Yesterday, the Hon’ble Mumbai High Court had delivered its judgement on the writ petition filed against a notice issued by the Income Tax department under section 201(1) of the Income Tax Act, 1961 to Vodafone International Holdings BV, asking it to show-cause as to why it should not be treated as an assessee in default for failure to deduct tax on payment made in respect of transfer of securities relating to Vodafone Essar Ltd.
Shri Singh said that the judgement has strengthened the hands of the Income Tax department in its attempt to bring to tax in India, the transactions involving transfer of assets situated in India between entities located outside the country.