Supreme Court rejects Rs 11,000 crore tax claim on Vodafone
On 20 January Supreme Court rejected the income tax department's claim of Rs 11,000 crore on Vodafone. The SC ruled that the Netherlands-based holding company of Vodafone wasn’t liable to pay the capital gains tax.
The Income tax department claimed Rs 11,000 crore as a tax for a deal in 2007 in the purchase of a majority stake in mobile phone operator Hutchison Essar. SC sets a legal benchmark for foreign investment by declaring that companies cannot be taxed in India for the deal concluded overseas.