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India Tax Authority Drops ₹8,500-Crore Vodafone Transfer-Pricing Case at Supreme Court

The withdrawal leaves intact the Bombay High Court’s 2015 finding that the 2008 sale was a domestic deal.

Overview

  • A Supreme Court bench led by Chief Justice B. R. Gavai allowed the Commissioner of Income Tax to withdraw the long-pending appeal.
  • The department had sought to add about ₹8,500 crore to Vodafone India Services’ income over alleged transfer of call options and intangible rights.
  • The dispute stemmed from Vodafone India’s FY08 sale of its Ahmedabad-based 3 Global Services unit to Hutchison Whampoa Properties (India).
  • The Income Tax Appellate Tribunal backed the tax department in 2014 before the Bombay High Court quashed the demand in October 2015.
  • The case had sat dormant at the Supreme Court since 2016 with no hearing since 2017, and the withdrawal follows the court’s recent clarification on reassessing Vodafone Idea’s AGR dues.