SC admits tax dept's appeal vs HC order to quash notices to Vodafone Idea
This story was originally published at 17:32 IST on 21 January 2025
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NEW DELHI – The Supreme Court has admitted an appeal by the tax department against a Bombay High Court's order to quash notices sent to Vodafone Idea Ltd. on the ground that there was a huge difference in the quantum of income that had escaped assessment. The notices issued in March 2023 under Section 148A(b) of the Income Tax Act, 1961 stated that the amount that escaped assessment was INR 428.58 billion, but the Principal Chief Commissioner of Income Tax's order in April 2023 had said the amount was INR 124.32 billion.
The tax department had issued the notice in March 2023 to Vodafone on the ground that the income chargeable to tax for the assessment year 2016-17 had escaped assessment. In April 2023, Vodafone filed its objection against the notice. In the same month, the tax department passed an order and issued a notice to Vodafone under Section 148 of the Act.
The high court rejected the Principal Chief Commissioner of Income Tax's approval to give notice under Section 148 of the Act to Vodafone. The records with the commissioner would certainly have contained the notices which said the escapement of income was INR 428.58 billion, however the amount mentioned in its order was INR 124.32 billion, the high court had said. In the said order, there was no explanation as to how the amount had changed or gone down, the high court said.
"With great regret, we have to mention that these approvals are being granted mechanically and without application of mind and this is not the only matter," the high court had said. Consequently, the high court had quashed the approval by the commissioner and notices to Vodafone under Section 148A(b) and Section 148 of the Act. Challenging this, the tax department moved the top court.
On Tuesday, shares of Vodafone Idea ended almost 6% lower at INR 9.36 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Ashish Shirke
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