The HC ruled that there is no taxable income arising out of the transfer. The case dates back to Vodafone's purchase of Hong Kong-based Hutchison Whampoa's stake in Hutchison Essar for over 11 billion dollars in 2007.
Mumbai: The Bombay High Court has ruled in favour of Vodafone, maintaining that it was not eligible to pay 3,200 crore in tax over the transfer of shares from an Indian subsidiary of the company to the parent company.
The HC ruled that there is no taxable income arising out of the transfer. The case dates back to Vodafone's purchase of Hong Kong-based Hutchison Whampoa's stake in Hutchison Essar for over 11 billion dollars in 2007.
According to the I-T department, the British telecom company did not deduct capital gains tax from the seller. The tax department then served a notice to Vodafone. The company then the HC, seeking relief. Around 20 companies are expected to benefit from the judgement.
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