Dec 23, 2016 after a further 14 days of silence from vodafone, he issued a court judgement, at a cost of. Acit supreme court in the premises, we hold that in respect of assessment years ending on 31st march 2017 or before, if a notice was issued in conformity with the requirements stated in subsection 2 of section 143 of the act, it shall not be necessary to process the refund under subsection 1 sedco forex international inc vs. Vodafone idea shares tumble 23% after india orders it to pay billions. The decision of the indian supreme court in vodafone and. The supreme court held that the nonindian holding company structure through which the target company held its interest in the indian business could not. The supreme court of india recently issued a landmark judgment in the muchawaited vodafone case.
On october 24, 2019 the supreme court delivered a significant judgment in relation to the licensing agreement between telecom companies and the department of telecom dot. The judgment highlights that the hutchinson transaction in which vodafone acquired a single share of an htil subsidiary was a valid structural transaction and the indian authorities had no jurisdiction to tax such an offshore transaction. But from that qualification it follows that the prevailing assumption that this judgment is a complete. The supreme court admitted the slp and directed vodafone to deposit rs. Oct 25, 2019 the supreme courts judgement thursday backing the governments definition of adjusted gross revenue may hasten further consolidation, paving the way for a twooperator telecom market, comprising reliance jio and bharti airtel, with vodafone ideas very survival at stake, analysts said. Supreme court s held ruling to set aside the bombay high court judgement asking the company to pay income tax of inr 11,000 crore. Verdict of supreme court on 2g spectrum allocations pre.
The supreme court has handed over the possession of the dispute piece of land in ayodhya to a trust for the construction of a hindu temple, while allocating a separate, 5acre plot for the construction of a mosque. Kamesh susarla and ramesh ravisankar beyond vodafone the. The supreme courts judgement thursday backing the governments definition of adjusted gross revenue may hasten further consolidation, paving the way for a twooperator telecom market, comprising reliance jio and bharti airtel, with vodafone ideas very survival at stake, analysts said. The hearing will be conducted in closed chambers at 1. Supreme court ruling in 2019 in april 2019, the supreme court dismissed the slp 1 filed by the epfo as having no merit.
Jan 08, 2018 case law vodafone case vs income tax department complete analysis. Landmark supreme court verdict in the vodafone case. Guide to law laid down by the supreme court in vodafone international holdings b. The supreme courts judgement thursday backing the governments definition of adjusted gross revenue may hasten further consolidation, paving the way for a twooperator telecom market. The muchawaited judgment delivered by the bombay high court on sep tember 8, 2010, in the case of vodafone international. Vodafone india limited, idea cellular limited and coai respectively. Kapadia, honble justice swatanter kumar and honble justice k. Pdf transfer pricinga case study of vodafone researchgate. Recently, the bombay high court the high court in the case of shell india markets pvt. Whatever is payable in all concerns and is earned by all permanent employees is included for the purpose of contribution, but whatever is not payable by all concerns or may not be earned by all employees of a concern is. The supreme court of india pronounced the landmark judgment in vodafone international holding vih v. The supreme court on thursday permitted a chairman to be appointed to a second arbitral panel in the rs 11,000crore vodafone income tax dispute, but specified that proceedings would not begin till the delhi high court heard out any government objections.
Shirpur education society through its principal vs. Jan 21, 2012 the supreme court of india after hearing the matter for over two months, has delivered its much awaited landmark 275page decision, involving taxability of a transaction between two nonresident companies having no presence in india, in relation to transfer of shares of an overseas company, in favour of vodafone international bv vih to hold that the transaction is not taxable in india and. The court of appeal held that the cfc legislation can be interpreted so as to be compatible with the ec treaty. The latest supreme court judgments for may 2020 with complete details of case numbers, parties name, judge names and headnotes.
The prayed for quashing of the aforesaid order and consequential. However, the supreme court noted that vodafone could approach the high court if it was ruled against. The supreme court of india after hearing the matter for over two months, has delivered its much awaited landmark 275page decision, involving taxability of a transaction between two nonresident companies having no presence in india, in relation to transfer of shares of an overseas company, in favour of vodafone international bv vih to hold that the transaction is not taxable in india and also that the revenue authorities ra have no jurisdiction to tax the transaction. In 2008 the bombay high court held that the transaction was one of the capital assets transfers. All you need to know about vodafone tax case zee business. The supreme court accepted that tax laws were subject to the discipline of part iii of. Lj 225, the honourable supreme court has considered the provisions of section 195 of the incometax act. Sep 26, 2018 indias supreme court has come down heavily on the mandatory linking of aadhaar for almost everything. On 11 february 2007, a sale purchase agreement spa was entered into between the petitioner and htil under which. Supreme court ruling on the applicability of provident fund. The supreme court of india after hearing the matter for over two months, has delivered its much awaited landmark 275page decision, involving taxability of a transaction between two nonresident companies having no presence in india, in relation to transfer of shares of an overseas company, in favour of vodafone international bv vih to hold that the transaction is not taxable in india and.
Vodafone filed special leave petition slp before the honourable supreme court of india. Supreme court ruling on higher pension benefit to employees. On august 22, the high court had restrained vodafone groups arbitration proceedings under the indiauk bipa. Supreme court issues landmark judgment in vodafone case. Supreme courts held ruling to set aside the bombay high court judgement asking the company to pay income tax of inr 11,000 crore. Even more importantly, it is heartening that the court has taken what it is submitted is the correct view especially on the facts of vodafones case. In the supreme court of india civil original jurisdiction writ petition civil no. The supreme courts judgement thursday backing the governments definition of adjusted gross revenue may hasten further consolidation, paving the way for a twooperator telecom market, comprising reliance jio and bharti airtel, with vodafone idea s very survival at stake, analysts said. It was not alleged that the vodafone case involved tax avoidance.
The transaction was a transfer of shares in a nonindian company by a nonindian seller to a nonindian purchaser. Jan 22, 2012 that the court has now done so has been welcomed as much needed respite in bad times. Supreme court in its hearing on january 17, 2020, rejected pleas by. Aug 27, 2012 in the case of vodafone international holdings b. Vodafone idea shares tumble 23% after india orders it to pay. This was also ignored, so mr monteith won the judgement by default. An analysis of the supreme courts judgment in vodafone. The sc in vodafone has totally disregarded the later decisions which have analysed and modified the ramsay principle to quite some extent. In march 2000 vodafone acquired the mannesmann ag group of companies and as part of this process established a wholly owned luxembourg subsidiary, vodafone investments luxembourg sarl vil. Vodafone said that neither vodafone nor hutch was liable to pay tax as both the companies were located outside india and deal happened outside the country.
High court judgment template courts and tribunals judiciary. Acit supreme court in the premises, we hold that in respect of assessment years ending on 31st march 2017 or before, if a notice was issued in conformity with the requirements stated in subsection 2 of section 143 of the act, it shall not be necessary to process the refund under subsection 1. The supreme court of india rules in favor of vodafone in a. Both the telecom companies in question did not respond to queries on the. In one of the most high profile cross border tax litigation involving taxability of a. Hi friends here in this article you can find all details related to vodafone case like details of vodafone case, details of tax authoritys contention, details for bombay high court decision, details for supreme court. High court judgment dated 8th september 2010 in the tax liability matter of. On october 24, 2019 the supreme court delivered a significant judgment in relation to the licensing. In this a landmark decision, the supreme court reversed the decision of the bombay high court and held that the indian tax authorities did not have territorial jurisdiction to tax the offshore transaction, and therefore, vodafone was not liable to. In its judgment, the court accepted the interpretation given to adjusted gross revenue by the dot and ruled against the telecom companies. The supreme court verdict allowing the centre to recover rs 92,641 crore in total adjusted gross revenue from telecom operators in india is a massive blow to bharti airtel and vodafone idea ltd, kotak securities has said. Uoi the supreme court has laid down several important and farreaching principles of law on tax planning vs. Feb 04, 2014 september 2010 the bombay high court dismissed vodafones writ petition against the order of the tax authorities.
The supreme courts vodafone tax judgement was perceived by some as making a strong case for certainty in policy environment for investors by coming down heavily on policymakers. Under the supreme court rules, 1966, such a petition needs to be filed within 30 days from the date of judgement or order. In a strongly worded judgement, the supreme court rejected telecom networks. The following is the full judgement of the supreme fivejudge bench in ayodhya ram temple babri masjid. This, they said, is since voda ideas total licence fee outstandings including interest and penalties.
The ruling is another setback for the british telecom giants indian arm, after mobile operators in the country lost a case and were asked to pay. Radhakrishnan vide 2 concurring judgments, set aside the controversial bombay. Shares of vodafone idea fell by more than 23% on friday after indias apex. Vodafone thus filed a writ petition in bombay high court challenging the jurisdiction.
In a detailed examination of the transaction documents, the revenue as. The high court observed that to apply chapter x of the incometax. Supreme court chose to follow the american decisions that had rejected the suggestion that. Vodafone idea seeking relaxed payment scheme for the agr dues. The court also asked the it department to return rs 2,500 crore deposited by vodafone, in compliance of its interim order, within two months along with 4 per cent interest. Supreme court ruling the supreme court in its ruling examined and discussed the following judgements. The vodafone judgment unlike the chinese tax authorities who had a mechanism in the domestic tax law to tax indirect transfers,1 the vodafone ruling signified the first time an indian judicial authority indian supreme court arbitrated on a transaction involving the indirect transfer of shares of an indian company through an offshore entity. The uk supreme court or the house of lords as it was called previously has moved on and incorporated several other principles in adjudicating on antitax avoidance cases. The bombay high court upholds in favour of shell india and. Feb 14, 2020 in a strongly worded judgement, the supreme court rejected telecom networks application to defer paying historic vodafone idea shares tumble 23% after india orders it to pay billions in. Radha krishnan and swatanter kumar quashed the order of high court of demand of rs 12000 crores as capital gain tax and absolved vih from liability of payment of rs 12000 crores as capital gain tax in the. Analysis of the vodafone supreme court order in a landmark judgment passed on 20th january 2012, a three judge bench of the supreme court comprising of chief justice of india honble justice s.
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