CA NeWs Beta*: supreme court dismissed govt review petition on vodafone

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Tuesday, March 20, 2012

supreme court dismissed govt review petition on vodafone

NEW DELHI: The Supreme Court on Tuesday dismissed government's review plea in the Vodafone-Hutch tax case. The apex court had ruled in favour of Vodafone in Rs 11,000 crore tax case in January.

A bench of Chief Justice S.H. Kapadia, Justice K.S. Radhakrishnan and Justice Swatanter Kumar dismissed the government's plea after considering it in their chamber.

Vodafone won a five-year legal battle against the Indian tax authorities in January as the apex court dismissed a $2.2 billion tax demand raised over the British mobile phone giant's acquisition of Indian mobile assets in 2007.

The tax office last month filed a petition seeking a review of that judgment.

The tax demand was over Vodafone's $11 billion deal to buy Hutchison Whampoa Ltd's Indian mobile business.

Vodafone, the world's largest mobile operator by revenue and the biggest overseas corporate investor in India, had argued that the Indian authorities had no right to tax the transaction between two foreign entities Even if tax was due, the company had argued, it should be paid by the seller and not the buyer.

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