British telecom operator Vodafone said it has filed an appeal with the Supreme Court, after the Bombay High Court dismissed its petition and ruled that the income-tax authorities have jurisdiction over tax bills in cross-border mergers.

“Vodafone remains convinced that there is no tax to pay on the Hutchison transaction and we will continue to defend this position vigorously,” a spokesperson for the Vodafone group said.

The IT Department had held Vodafone liable for not deducting tax at source from payment made to Hutchison as part of its $11-billion acquisition of a controlling stake in Hutchison Essar in 2007. The department had sent a tax notice of Rs 12,000 crore to Vodafone on the same.

Last week, the Bombay High Court ruled that Tax Department has jurisdiction over tax bills in cross-border mergers, dismissing a petition by Vodafone, setting a precedent for overseas firms looking to buy into Indian companies.

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