Quick Summary
The Income Tax Department has withdrawn its long-pending Rs 8,500 crore transfer pricing case against Vodafone India Services Pvt. Ltd., bringing an end to one of India's most prolonged corporate tax disputes. The withdrawal plea was filed by the Commissioner of Income Tax before a Supreme Court bench led by Chief Justice B.R. Gavai, which allowed the department to formally drop the case. According to the Supreme Court's website, the matter had been pending since 2016 and was last listed for he
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
The case concerned a transfer pricing dispute from 2008, where the Income Tax Department alleged that Vodafone India Services had not conducted an arm's length valuation when selling its call centre business to a related party, thus adding Rs 8,500 crore to its taxable income.
The Income Tax Department filed a withdrawal plea before the Supreme Court, which was allowed, formally dropping the case. The reasons for the withdrawal are not explicitly detailed beyond the filing of the plea.
The tax dispute dates back to the financial year 2008, concerning a transaction that took place in that year.
In 2015, the Bombay High Court sided with Vodafone, quashing the Rs 8,500 crore tax demand. The court held that the transaction was purely domestic and did not involve cross-border elements, meaning international transfer pricing provisions were incorrectly invoked.
Vodafone Idea had not issued an official statement in response to the development at the time of the report.
CAclubindia
