a penalty of a similar amount and accrued interest, run into Rs 20,000 crore.
Vodafone sought to club a Rs 3,700 crore transfer-pricing case of VISPL with the capital gains tax issue, a demand that was not acceptable to the Finance Ministry.
"In fact, no such transfer took place, the options were held both before and after Hutchison Essar sale by the same company," Vodafone said.
The I-T department slapped a tax liability of Rs 3,700 crore in the share transfer case from its subsidiary VISPL.
"From the outset of the discussions, Vodafone has made it clear that any negotiated resolution would need to encompass all aspects of the Hutchison Essar sale considered by the Supreme Court in reaching its verdict in 2012," it added.