Tax Demand
Tax dept withdraws INR 37 billion tax demand case vs Vodafone India from SC
This story was originally published at 22:47 IST on 3 November 2025
Register to read our real-time news.Informist, Monday, Nov. 3, 2025
NEW DELHI – The Income Tax department Monday withdrew its plea from the Supreme Court wherein it had demanded INR 37 billion from Vodafone India Services Pvt. Ltd. regarding sale of telecom company's call centre business to Hutchison Whampoa Properties (India) Ltd. The Supreme Court's bench led by Chief Justice of India B.R. Gavai allowed the department to withdraw its petition.
The case has its genesis from the sale of Vodafone India's Ahmedabad-based call centre business to Hutchison Whampoa Properties as part of internal restructuring in 2007-08 (Apr-Mar). Thereafter, the income tax department issued an order in 2012 that Vodafone India had engaged in undisclosed international transactions.
According to the tax department, the deal of sale of call centre business involved the transfer of call options and intangible rights of commercial value to a related entity, that qualified it as an international transaction. Consequently, the income tax department sought to add INR 85 billion to Vodafone India's taxable income. The department said that the sale had not been conducted at an arm's length price.
In 2015, the Bombay High Court ruled in Vodafone India's favour and said that the tax department did not have the jurisdiction to examine the deal involving the sale of Vodafone's call centre business to Hutchison Whampoa Properties. Challenging this, the income tax department had moved the Supreme Court. End
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
