Apex court adjourns Vodafone plea on income tax order

New Delhi, Oct 25 (IANS) The Supreme Court Monday adjourned till Nov 15 the hearing on a petition by telecom giant Vodafone challenging an Income Tax department demand for a payment of Rs.11,218 crore ($2.5 billion) in tax.

The tax liability is related to the company’s take-over of the Indian operations of Hutchison Telecommunication International Limited.

The apex court bench of Chief Justice S.H. Kapadia, Justice K.S. Radhakrishnan and Justice Swatanter Kumar adjourned the hearing, asking the telecom giant to file a reply to the Income Tax notice.

The court said that it too wanted to go through the tax department notice to Vodafone. The matter will come up for hearing Nov 15.

Vodafone contended that it did not attract the jurisdiction of the Indian tax authorities. It said it was a based in the Netherlands and Hutchinson was based in Hong Kong.

Vodafone contended that its transaction of acquiring Hutch Essar took place on a foreign soil.

The entire deal between the two telecom giants was to the tune of $11 billion and the tax liability works out to $2.5 billion. Upon conversion in rupee, the tax liability along with interest component works out to Rs.11,128 crore.

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