SC orders IT department to refund Rs 733 cr to Vodafone Idea

The Supreme Court declares of a partial relief to cash-strapped Vodafone Idea. SC has asked the Income Tax department to refund Rs 733 crore within four weeks, which the telecom operator had sought as part of a larger tax dispute.

Its contested total refund, amounting to Rs 4,759 crore, will help pay at least a part of its statutory dues worth more than Rs 58,000 crore or meet capital expenditure needs. Shares of Vodafone Idea closed about 5% higher on the BSE on Wednesday.

The company still needs to pay over Rs 51,000 crore of its adjusted gross revenue (AGR) dues to the government, has been involved in various tax-related disputes with the I-T department. This includes a Rs 20,000-crore withholding tax dispute related to its Hutchison stake buy in 2007, which is currently under international arbitration. The company was then known as Vodafone Mobile Services Ltd.

It ruled that the IT department was entitled to invoke powers under Section 245 of the I-T Act to set off the amount of refund payable in AY 2014-15 against tax still to be paid by the carrier.