In march 2000 vodafone acquired the mannesmann ag group of companies and as part of this process established a wholly owned luxembourg subsidiary, vodafone investments luxembourg sarl vil. But from that qualification it follows that the prevailing assumption that this judgment is a complete. Pdf transfer pricinga case study of vodafone researchgate. The government has estimated vodafone ideas dues in the agr matter to be more than rs 53,000 crore, including over rs 28,000 crore in.
The judgment highlights that the hutchinson transaction in which vodafone acquired a single share of an htil subsidiary was a valid structural transaction and the indian authorities had no jurisdiction to tax such an offshore transaction. Hi friends here in this article you can find all details related to vodafone case like details of vodafone case, details of tax authoritys contention, details for bombay high court decision, details for supreme court. Under the supreme court rules, 1966, such a petition needs to be filed within 30 days from the date of judgement or order. Vodafone judgement clearly states that our government knows full well. The supreme court on thursday permitted a chairman to be appointed to a second arbitral panel in the rs 11,000crore vodafone income tax dispute, but specified that proceedings would not begin till the delhi high court heard out any government objections. Kapadia, honble justice swatanter kumar and honble justice k. The supreme courts vodafone tax judgement was perceived by some as making a strong case for certainty in policy environment for investors by coming down heavily on policymakers. Supreme court has gone wrong in deciding the wellknown vodafone.
The decision of the indian supreme court in vodafone and. Jan 22, 2012 that the court has now done so has been welcomed as much needed respite in bad times. In the impugned judgment, the high court has rightly observed that the arguments advanced on behalf of the department vacillated. All you need to know about vodafone tax case zee business. Kamesh susarla and ramesh ravisankar beyond vodafone the. Uoi the supreme court has laid down several important and farreaching principles of law on tax planning vs. The following is the full judgement of the supreme fivejudge bench in ayodhya ram temple babri masjid.
Lj 225, the honourable supreme court has considered the provisions of section 195 of the incometax act. Why supreme courts judgement has pitted vodafone idea. Oct 25, 2019 the supreme courts judgement thursday backing the governments definition of adjusted gross revenue may hasten further consolidation, paving the way for a twooperator telecom market, comprising reliance jio and bharti airtel, with vodafone ideas very survival at stake, analysts said. The supreme court of india rules in favor of vodafone in a. On 11 february 2007, a sale purchase agreement spa was entered into between the petitioner and htil under which. However, the supreme court noted that vodafone could approach the high court if it was ruled against. In this a landmark decision, the supreme court reversed the decision of the bombay high court and held that the indian tax authorities did not have territorial jurisdiction to tax the offshore transaction, and therefore, vodafone was not liable to. Analysis of the vodafone supreme court order in a landmark judgment passed on 20th january 2012, a three judge bench of the supreme court comprising of chief justice of india honble justice s. This, they said, is since voda ideas total licence fee outstandings including interest and penalties.
Reactions to the supreme court decision on vodafone the new. Supreme court quashes mha order to pay full salaries. The supreme court s judgement thursday backing the governments definition of adjusted gross revenue may hasten further consolidation, paving the way for a twooperator telecom market, comprising reliance jio and bharti airtel, with vodafone ideas very survival at stake, analysts said. In one of the most high profile cross border tax litigation involving taxability of a. The high court observed that to apply chapter x of the incometax. It is worth explaining at the outset of this judgment that, if valid, the effect of the certificate would be to override a decision of the upper tribunal, which is a judicial body and which has the same status as the high court. The supreme court of india pronounced the landmark judgment in vodafone international holding vih v. Vodafone thus filed a writ petition in bombay high court challenging the jurisdiction. The judgement came against a writ petition filed by karnatakabased company ficus pax private limited, which had challenged the constitutional validity of government notifications mandating full. The supreme court of india recently issued a landmark judgment in the muchawaited vodafone case. Vodafone idea may seek more time from supreme court to pay. The supreme court held that the nonindian holding company structure through which the target company held its interest in the indian business could not.
The supreme court accepted that tax laws were subject to the discipline of part iii of. An analysis of the supreme courts judgment in vodafone. On august 22, the high court had restrained vodafone groups arbitration proceedings under the indiauk bipa. Vodafone idea shares tumble 23% after india orders it to pay billions. Vodafone wins transfer pricing tax dispute case the hindu. Vodafone said that neither vodafone nor hutch was liable to pay tax as both the companies were located outside india and deal happened outside the country. Supreme court judgment, the court is of the view that there. The supreme courts judgement thursday backing the governments definition of adjusted gross revenue may hasten further consolidation, paving the way for a twooperator telecom market, comprising reliance jio and bharti airtel, with vodafone ideas very survival at stake, analysts said. The court also asked the it department to return rs 2,500 crore deposited by vodafone, in compliance of its interim order, within two months along with 4 per cent interest. Shares of vodafone idea fell by more than 23% on friday after indias apex.
The sc in vodafone has totally disregarded the later decisions which have analysed and modified the ramsay principle to quite some extent. Supreme court issues landmark judgment in vodafone case. Verdict of supreme court on 2g spectrum allocations pre. Dec 16, 2016 the tax authorities are likely to challenge the decision in the supreme court.
Radhakrishnan vide 2 concurring judgments, set aside the controversial bombay. The court of appeal held that the cfc legislation can be interpreted so as to be compatible with the ec treaty. In a strongly worded judgement, the supreme court rejected telecom networks. The bombay high court upholds in favour of shell india and. Aug 27, 2012 in the case of vodafone international holdings b. Acit supreme court in the premises, we hold that in respect of assessment years ending on 31st march 2017 or before, if a notice was issued in conformity with the requirements stated in subsection 2 of section 143 of the act, it shall not be necessary to process the refund under subsection 1 sedco forex international inc vs. Vodafone idea shares tumble 23% after india orders it to pay. The vodafone judgment unlike the chinese tax authorities who had a mechanism in the domestic tax law to tax indirect transfers,1 the vodafone ruling signified the first time an indian judicial authority indian supreme court arbitrated on a transaction involving the indirect transfer of shares of an indian company through an offshore entity. It was not alleged that the vodafone case involved tax avoidance. The transaction was a transfer of shares in a nonindian company by a nonindian seller to a nonindian purchaser. Supreme courts held ruling to set aside the bombay high court judgement asking the company to pay income tax of inr 11,000 crore. The supreme court verdict allowing the centre to recover rs 92,641 crore in total adjusted gross revenue from telecom operators in india is a massive blow to bharti airtel and vodafone idea ltd, kotak securities has said. The uk supreme court or the house of lords as it was called previously has moved on and incorporated several other principles in adjudicating on antitax avoidance cases. Both the telecom companies in question did not respond to queries on the.
Jan 08, 2018 case law vodafone case vs income tax department complete analysis. Landmark supreme court verdict in the vodafone case. On the retrospective amendments made to overcome the judgement of the supreme court in. Court of appeals decision would be to permit such disclosure.
Jan 21, 2012 the supreme court of india after hearing the matter for over two months, has delivered its much awaited landmark 275page decision, involving taxability of a transaction between two nonresident companies having no presence in india, in relation to transfer of shares of an overseas company, in favour of vodafone international bv vih to hold that the transaction is not taxable in india and. In a landmark judgment passed on 20th january 2012, a three judge bench of the supreme court comprising of chief justice of india honble. The latest supreme court judgments for may 2020 with complete details of case numbers, parties name, judge names and headnotes. Radha krishnan and swatanter kumar quashed the order of high court of demand of rs 12000 crores as capital gain tax and absolved vih from liability of payment of rs 12000 crores as capital gain tax in the. Feb 14, 2020 in a strongly worded judgement, the supreme court rejected telecom networks application to defer paying historic vodafone idea shares tumble 23% after india orders it to pay billions in. The supreme court has handed over the possession of the dispute piece of land in ayodhya to a trust for the construction of a hindu temple, while allocating a separate, 5acre plot for the construction of a mosque. In 2008 the bombay high court held that the transaction was one of the capital assets transfers. The first was whether a retrospective amendment could affect the party. In october last year, vodafone won a transfer pricing case having an additional demand of rs. Dastur pointed out that while parliament had the power to enact retrospective legislation, there were three aspects to be considered. Recently, the bombay high court the high court in the case of shell india markets pvt. The supreme court judgment has predominantly impacted the.
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