SC directs Income Tax Dept to Refund Rs.733 Crores to Vodafone within 4 weeks [Read Judgment]

Vodafone - Income Tax - taxscan

A two-judge bench of the Supreme Court has directed the income tax department to refund an amount of Rs.733 Crores to Vodafone within four weeks subjected to any proceedings that the Revenue may deem appropriate to initiate in accordance with the law.

The appellant-Vodafone Idea Ltd. is engaged in providing telecommunication services in different circles. By the scheme of arrangement between VMSL and Idea Cellular Ltd. Vodafone Idea Ltd., the resultant company assumed all the rights and liabilities of the amalgamating/transferor companies. The appellant claimed a refund of Rs.744.94 Crores. A notice under Section 143(2) of the Act was issued to the appellant.

There was complete inaction on part of the respondents in processing the ITRs filed by the appellant and in issuing an appropriate refund to the appellant, Writ Petition was filed by the appellant in the High Court.

The bench consisting of Justice Uday Umesh Lalit and Justice Vineet Saran said, “We direct that the amount of Rs.733 Crores shall be refunded to the appellant within four weeks from today subject to any proceedings that the Revenue may deem appropriate to initiate in accordance with the law. We also direct the respondents to conclude the proceedings initiated pursuant to notice under sub-section (2) of Section 143 of the Act in respect of AY 2016-17 and 2017-18 as early as possible.”

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