I-T moves SC to reopen Vodafone case

Quoting the same judgment, the application continues: “There is the large hidden loss to the community by some of the best brains in the country being involved in the perpetual war waged between the tax-avoider and his expert team of advisers, lawyers and accountants on one side and the tax-gatherer and his perhaps not so skilful advisers on the other side.”

The government’s intent to reopen the matter was first expressed during the hearing of the Vodfone-Essar Gujarat case last Monday when solicitor-general R Nariman argued that the matter be heard by a seven-judge bench.

The Vodafone judgment was recently criticised by former Supreme Court chief justice JS Verma, who told The Indian Express that the judgment formed part of three infamous SC judgments. Verma said the judgment bypassed the court’s 1985 judgment. About his other reasons for not being convinced with the Vodafone judgment, Verma had said: “The moral foundation is as much available to tax laws as it is to welfare legislation. It is therefore necessary that while interpreting taxation laws, you have to bear that fact in mind. Also, see the implication: While the law permits legitimate avoidance of tax by tax planning, illegitimate tax avoidance by adopting a subterfuge is not permissible. This should be shunned by the courts. This is something that has been settled by most cases.

... contd.