Bombay High Court Orders Income Tax Refund of Rs 1,128 Crore to Vodafone Idea

9 Nov 2023 , 01:45 PM

Vodafone Idea shares rise 2.5% in early trade on November 9 following Bombay High Court’s directive. The court orders the income-tax department to refund Rs 1,128 crore paid by Vodafone Idea in dues for 2016-17.

The court deems the assessment order against the telecom major as ‘unsustainable and time-barred.’ The assessment order was issued by an income tax officer on August 31, two years after a dispute resolution panel’s directions to Vodafone Idea.

Vodafone Idea contests the order, citing the assessing officer’s failure to deliver a final verdict within the stipulated 30-day period. The court recommends an inquiry against the assessing officer for not abiding by the legal mandate and showing lack of diligence.

Strict action is advised against responsible persons for the displayed laxity and lethargy, causing a significant loss to the exchequer and citizens. The court directs the completion of the inquiry process within the next 30 days.

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