Marginal Relief for Vodafone Idea as SC directs IT Department to refund Rs 733 crore

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Granting marginal relief to Vodafone Idea, the Supreme Court on Wednesday directed the IT department to refund Rs 733 crore for the Assessment Year 2014-15, setting aside other claims.

The apex court ordered the revenue department to refund the amount to Vodafone Idea within four weeks.

Following are the details of the refund claimed by the telecom giant for each AY:

  • 2014-15 – Rs 1,532.09 crore
  • 2015-16 – Rs 1,355.51 crore
  • 2016-17 – Rs 1,128.47 crore
  • 2017-18 – Rs 743.67 crore

“Insofar as AY 2014-15 is concerned, the final assessment order passed under Section 143(3) of the Act indicates that the appellant is entitled to refund of Rs.733 Crores within four weeks from today subject to any proceedings that the Revenue may deem appropriate to initiate in accordance with law,” the Supreme Court ruled.

IT department had said that the ITRs of the appellant (Vodafone Idea) raised several issues such as Transfer Pricing Adjustment, Capitalization of Licence Fees, 3G Spectrum Fees, Asset Restoration Cost Obligation including the effect of amalgamation of group entities which required thorough scrutiny.

Moreover, the bench headed by Justice U.U. Lalit directed the respondents to conclude the proceedings in respect of AYs (Assessment Years) 2016-17 and 2017-18 expeditiously.

Vodafone Idea Limited is a partnership between Aditya Birla Group and Vodafone Group, having a subscriber base of over 332 milion.

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