Income Tax department says Vodafone committed fraud
Income Tax department (IT DEPARTMENT) has decided to file an affidavit before the Income Tax Appellate Tribunal in Mumbai, claiming Vodafone has committed a ‘fraud’. The new development comes on the same day when Vodafone one of the giants in indian telecom industry becomes India’s first telecom company with 100 percent FDI .
it states that Vodafone has been trying to inter mingle facts in the main Supreme Court issue along with the transfer pricing case which is on at the Income Tax Appellate Tribunal (ITAT) currently. In a hearing, the additional Solicitor General had said that Vodafone infact tried to suppress facts at the time of the main hearing in the Supreme Court and this tantamount to a fraud.
The Supreme Court case was related to the transfer of assets and the court had said that actually the deal had really not happened. So, the whole issue got dismissed and that is how this entire controversy started.
Here the government has said very clearly that an option was exercised by various parties to buy out Hutchison’s stake and sell it to Vodafone. Supreme Court had said that the option had not been exercised and hence the transfer of assets did not happen. Hence the taxation doesn’t arise.