Zee Media Bureau
New Delhi: The Bombay High Court on Friday ruled in favour of the British telecom giant Vodafone in the transfer pricing dispute pertaining to sale of shares of its Indian unit to a Mauritius-based group company.
The court said that there was no taxable income arising out of the transaction. The amount of tax demanded by the authorities stood at Rs 3,200 crore in 2009-2010.
Vodafone is among 20 MNCs involved in transfer pricing disputes with Indian tax authorities. It is expected that the income tax department may appeal to the Supreme Court against the order.
The tax authorities had challenged the valuation method adopted by Vodafone India Services Pvt Ltd (VISPL) while issuing shares to Vodafone Teleservices Mauritius in 2007-08.
Vodafone is locked in twin tax disputes with the government. One pertains to its 2007 acquisition of Hutchison Whampoa’s stake in Hutchison Essar, and the other is the transfer pricing case involving Vodafone India Services.
