Supreme Court asks Income Tax Department to refund Rs 733 crore to Vodafone Idea

The Supreme Court on Wednesday granted partial relief to Vodafone Idea Ltd. asking the Income Tax Department to refund Rs 733 crore to the telecom company within four weeks for the assessment year 2014-15.

Vodafone Idea had demanded Rs 4,759.07 crore in tax refund for the assessment years 2014-15, 2015-16, 2016-17 and 2017-18. Explain that Vodafone Idea was earlier known as Vodafone Mobile Services Limited. The apex court did not order income tax refunds related to income other than the assessment year 2014-15.

A Bench of Justices UU Lalit and Vineet Saran said in its order that as far as the assessment year 2014-15 is concerned, the final assessment order (Income Tax) has been passed under section 143 (3) of the Act, indicating that the appellant (Telecom firm) is entitled to a refund of Rs 733 crore. Whereas, for the assessment year 2015-16, the appellant is entitled to a refund of Rs 582 crore. 

The Supreme Court also stated that the Income Tax Department would be entitled to invoke the requisite power under section 245 of the Act 2014, which would determine the amount of refund payable in respect of assessment year 2014-15 against tax balance due.

The court said, “The requisite action has not been initiated yet, so we do not say anything in that regard. On the premises, we direct that the amount of Rs. 733 crore be paid to the appellant (telecom firm) within four weeks from today Shall be returned subject to any proceeding which may be appropriate to commence in accordance with the revenue law.

 

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