HC rejects Vodafone's writ petition in transfer pricing case

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Vodafone had filed the petition in Bombay HC in a transfer pricing dispute after authorities sought to add Rs 85 billion to the taxable income of a unit. (Reuters) Vodafone had filed the petition in Bombay HC in a transfer pricing dispute after authorities sought to add Rs 85 billion to the taxable income of a unit. (Reuters)
SummaryI-T dept had passed a transfer pricing order relating to call centre business of the company in 2011.

acquisition of 67 per cent of Hong Kong-based Hutchison Whampoa Ltd’s stake in its Indian telecom business in 2007.

The department had raised a tax demand of Rs 11,200 crore regarding the acquisition that was challenged by the company on the grounds that the income tax authorities had no jurisdiction on the transaction.

The Supreme Court had upheld Vodafone’s contention after which the government retrospectively amended the law to make the deal taxable in India.

Tax liability

*The I-T department had passed a transfer pricing order relating to the call centre business of the company in 2011

* In February 2012, Vodafone challenged the jurisdiction of the department maintaining that the transactions were domestic

*The court rejected the petition and said that alternative resolution mechanisms were available

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