Supreme Court grants partial relief to Vodafone Idea by allowing tax refund of Rs. 733 crores
In partial relief to financially stressed Vodafone Idea, the Supreme Court has allowed for a tax refund of Rs. 733 crore as against the Rs. 4760 crore claim put forth by the telecom operator.The Apex Court has directed the Centre to refund the amount within four weeks.Vodafone Idea had sought for a refund of Rs. 4,760 crore. The two-member Supreme Court bench headed by Justice U.U. Lalit...
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In partial relief to financially stressed Vodafone Idea, the Supreme Court has allowed for a tax refund of Rs. 733 crore as against the Rs. 4760 crore claim put forth by the telecom operator.
The Apex Court has directed the Centre to refund the amount within four weeks.
Vodafone Idea had sought for a refund of Rs. 4,760 crore. The two-member Supreme Court bench headed by Justice U.U. Lalit allowed the return of only Rs. 733 crore and dismissed the matter, according to a copy of the judgment.
“We direct that the amount of Rs. 733 crore shall be refunded to the appellant within four weeks from today subject to any proceedings that the Revenue may deem appropriate to initiate in accordance with law. We also direct the respondents to conclude the proceedings initiated pursuant to notice under sub-section (2) of Section 143 of the Income Tax Act in respect of AY 2016-17 and 2017-18 as early as possible,” said the judgement.
The company refund claims for the assessment years 2014-15, 2015-16, 2016-17 and 2017-18 stood at Rs 1,532.09 crore, Rs 1,355.51 crore, Rs 1,128.47 crore and Rs 743.67 respectively.
The Court also noted that the Income Tax department would be entitled to invoke requisite power under Section 245 of the Income Tax Act to set off the amount of refund payable in respect of AY 2014-15 against tax remaining payable.
Vodafone Idea had earlier moved the Delhi High Court where it alleged that there was inaction by the Income Tax Department in processing its Income Tax Returns (ITRs) and did not issue its appropriate refund. In its petition, the telecom operator sought a direction to the Government to process and grant refunds for the AYs 2014-15 to 2017-18, along with interest under Section 244A of the Income Tax Act.
The Delhi High Court however in December 2018 dismissed the petition. Vodafone moved the Supreme Court against that decision.
Vodafone Idea has over Rs. 58,000 crore in AGR-related dues, according to an estimate by the Department of Telecommunications (DoT).
