The SC observed that the tax department does not have the authority to withhold tax refunds anticipating future demands.
In a relief for Vodafone Idea, the Supreme Court on July 22 dismissed a plea filed by the Income Tax Department challenging the Bombay High Court order directing it to refund taxes worth Rs 833 crore to the telco, CNBC-TV18 has reported.
Upholding Vodafone’s claims for refund of taxes for the year AY 2014-15, the SC said the I-T department had in October 2019 concluded that Rs 833 crore was due and payable to the telecom company. It also observed that the tax department does not have the authority to withhold tax refunds anticipating future demands. The tax department had earlier opposed the refund to Vodafone Idea citing potential demands against the company.
Citing tax authorities’ rectification order dated May 28, Vodafone Idea had filed a petition seeking a direction to the I-T department to refund Rs 1009.43 crore, including Rs 833 crore on an immediate basis. Upholding the telco’s plea, the Bombay high court (HC) had earlier this month directed the tax department to refund Rs 833 crore to Vodafone Idea Limited within two weeks.
This comes at a time when the company is already looking at over Rs 58,000 crore in AGR dues, according to an estimate by the Department of Telecommunications (DoT). During the hearing in the matter related to AGR dues earlier this week, the apex court reiterated that there is no scope for re-assessment or re-calculation of dues owed by telecom players, as outlined by the DoT.
First Published on Jul 22, 2020 06:37 pm
