Britain’s Vodafone today moved the Supreme Court challenging a Bombay High Court order that upheld the Income Tax Department’s demand of Rs 12,000 crore tax on the company’s over USD 11 billion deal with Hong Kong-based Hutchison in 2007.
“Vodafone remains convinced that there is no tax to pay on the Hutchison transaction and we will continue to defend this position vigorously,” Vodafone Group Plc spokesperson said in a statement.
The Bombay High Court had last week dismissed Vodafone International’s petition challenging the Indian tax authorities demand of Rs 12,000 crore in tax over the Hutchison deal.
The High Court division bench held that IT had the jurisdiction to tax the transaction.
It, however, gave liberty to Vodafone to argue before the tax department that no penalty should be imposed as they genuinely believed they had no liability to deduct tax at source.