Good News for Vodafone Idea :-Income Tax Appellate Tribunal nixes tax claim on Vodafone rights issue In a relief to Vodafone India, the Mumbai bench of the Income Tax Appellate Tribunal has deleted the addition of ₹795 crore by tax authorities as income received from nine Mauritian entities that subscribed to the company’s rights issue in assessment year 2006-07. Gulveen AulakhETTelecomSeptember 15, 2020, 08:43 IST

New Delhi: In a relief to Vodafone India, the Mumbai bench of the Income Tax Appellate Tribunal has deleted the addition of ₹795 crore by tax authorities as income received from nine Mauritian entities that subscribed to the company’s rights issue in assessment year 2006-07.

The tribunal said the identity, creditworthiness and genuineness of the transaction were validated by the Supreme Court and therefore, the assessing officer cannot question them.

“It is abundantly clear the assessee has not only furnished irrefutable documentary evidence to establish identity and genuineness of shareholders, but has also established source of funds of such shareholders,” judicial members RL Negi and RC Sharma said in their order of August 28, which was released on Monday. Since the assessee had fully discharged its onus, there is clearly no case of unexplained credit, they said in the order.

The tribunal also said the Bombay High Court had settled that the Supreme Court’s judgement had to be taken into cognisance or else it would amount to ‘judicial indiscipline.’

ET