Vodafone tax row: Bombay HC puts off hearing to Jan 30

The Bombay High Court has fixedJanuary 30 for further hearing on a petition filed by IncomeTax department challenging a recent order of the AppellateTribunal which stayed the tax demand of Rs 3,700 crore onVodafone India Services in an alleged transfer pricing case.

The petition was mentioned yesterday by Income Taxcounsel Beni Chatterjee and Vodafone lawyer Fereshte Sethnabefore a bench headed by Chief Justice Mohit Shah.

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The department had slapped a demand of Rs 3,700 crore onVodafone for Financial Year 2008 which was a fall out of anearlier transfer-pricing order seeking to add Rs 8,500 croreto the taxable income of the company from the deal thatinvolved the it selling its BPO unit to an offshore entity.The company challenged the demand before the AppellateTribunal.

Transfer pricing refers to the actual price at which atransaction takes place between two related parties, usuallybelonging to the same group.

On December 27, 2013, the Appellate Tribunal had stayedthe I-T tax demand for six months or till the final disposalof the plea, whichever is earlier.

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The tribunal also directed Vodafone India Services tomake an initial deposit of Rs 200 crore. The first instalmentof Rs 100 crores was to be paid by January 15 and the secondinstalment of the equal amount is due by February 15.Vodafone was also directed by the tribunal to provide

corporate guarantees for the balance tax amount of Rs 3,500crore by February 15.

PTI