Avijit Bajpai
It’s not being a happy-happy ride for Vodafone in India! The telecom giant has now moved to the Supreme Court to challenge the decision of Bombay High Court that upheld the showcause notice issued by the Income Tax Department asking the company to pay around $2 billion in taxes over the Hutchison Essar acquisition deal.
On December 3, the Bombay High Court dismissed the petition by Vodafone in which it has challenged the showcause notice of the Income Tax Department.
Vodafone bought a 67 percent stake in Hutchison Essar in February 2007 for a sum of $11.2 billion and the deal resulted in a capital gains tax of $1.7 billion on the telecom major. Vodafone on the other hand, is alleging that the I-T department had no jurisdiction over the acquisition deal that was incorporated overseas.
|