Vodafone had
however sought Rs 4,759.07 crore in tax refund from for AYs - 2014-15, 2015-16,
2016-17 and 2017-18.
Illustration: Dominic Xavier
The Supreme Court on
Wednesday granted partial relief to Vodafone Idea Ltd by asking the Income Tax
department to refund Rs 733 crore to the telecom firm within four weeks,
for assessment year 2014-15.
Vodafone Idea, formerly
known as Vodafone Mobile Services Ltd, had however sought Rs 4,759.07 crore in
tax refund from for AYs - 2014-15, 2015-16, 2016-17 and 2017-18.
The top court did not order I-T refund pertaining to AYs
other than 2014-15.
“Insofar as AY 2014-15 is
concerned, final assessment order passed under Section 143(3) of the (Income
Tax) Act indicates that the appellant (telecom firm) is entitled to refund of
Rs 733 crore; while for AY 2015-16 there is a demand of Rs 582 crore,” a bench
comprising Justices U U Lalit and Vineet Saran said in the judgement.
The top court also noted
that the Income Tax department would be entitled to invoke “requisite power
under Section 245 of the Act to set off the amount of refund payable in respect
of AY 2014-15 against tax remaining payable.”
“Since the requisite action
is not even initiated, we say nothing in that respect.
“In the premises, we direct
that the amount of Rs 733 crore shall be refunded to the appellant (telecom
firm) within four weeks from today subject to any proceedings that the Revenue
may deem appropriate to initiate in accordance with law,” the top court said.
The bench also directed the
Tax department to conclude as early as possible the proceedings relating to the
demand of refund of the telecom firm and the scrutiny of income by the IT
department with respect to assessment years 2016-17 and 2017-18.
“Except for the directions
as indicated…, we see no merit in any of the contentions advanced by the
appellant (Vodafone). This appeal is, therefore, dismissed without any order as
to costs,” the judgement said.
The telecom company had
earlier moved the Delhi high court alleging that there was complete inaction on
part of I-T department in processing its ITRs and in issuing appropriate refund
to it.
The firm had sought a
direction to the government department to process and grant refunds for the AYs
2014-15 to 2017-18, along with interest under Section 244A of the Act.
The Delhi high court on
December 14, 2018 dismissed the petition and against that decision an appeal
was filed in the apex court.
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