Mumbai: The Bombay high court on Monday adjourned the hearing of the 8,500 crore transfer pricing case involving Vodafone India Services Pvt. Ltd and the Union government to 5 October, when the court will deliver it’s ruling.

The dispute resolution panel (DRP), which hears appeals in transfer pricing cases, is simultaneously hearing Vodafone’s appeal against the quantum of tax liability. DRP will pass an order by 30 September but has been directed by the high court to keep it in abeyance until the matter is decided by the court.

In February, through a writ petition, Vodafone challenged the jurisdiction of the tax department in issuing a draft transfer pricing order that sought to add 8,500 crore to the taxable income of Vodafone.

The income-tax department’s draft transfer pricing order, issued in December, related to a transaction on Vodafone’s call centre business.

Transfer pricing refers to the practice of arm’s length pricing for transactions between group companies to ensure that a fair price—one that would have been charged to an unrelated party—is charged.

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