BackRelief for Vodafone Idea! SC directs for tax refunds of ₹833 crore
On July 3, the Bombay High Court directed the I-T department to refund ₹833 crore to Vodafone IdeaOn April 29, the apex court directed the I-T department to issue refund of ₹733 crore to Vodafone Idea for assessment year 2014-15
PremiumIn a relief to Vodafone Idea, the Supreme Court on Wednesday directed the Income-Tax department to refund the telecom company ₹833 crore, pending for the assessment year (AY) 2014-15. The Bombay High Court earlier ordered the tax department to refund the said amount to the telcom service provider.
On April 29, the apex court directed the Income Tax department to issue refund of ₹733 crore to Vodafone Idea for assessment year 2014-15.
The telecom service provider has been facing a financial crisis after the apex court ordered it to pay adjusted gross revenue (AGR) dues and penalties worth over ₹55,000 crore.
The telco had earlier sought over ₹5,000 crore refund for the assessment years 2014-15 to 2017-18. For AY 2014-15, the Indian entity of Vodafone Idea filed income-tax returns, for ₹1,532 crore. In November 2015, Vodafone filed returns for AY 2015-16, claiming a refund of ₹1,355.51 crore. A year later, the company claimed a refund of ₹1,128.47 crore for AY 2016-17. For AY 2017-18, Vodafone claimed a refund of ₹743 crore.
The I-T department withheld the refund claiming that massive outstanding dues are pending and are yet to be settled with the telco. The apex court mentioned that the I-T department cannot withhold refunds against undetermined future demands.
The income tax assessing officer had passed a rectified refund order on 28 May after deducting ₹176.39 crore as pending dues and settling at ₹833 crore as net refund to Vodafone Idea.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
