The queen, on the application of vodafone ltd and others v secretary of state for business, enterprise and regulatory reform. Judgment in vodafone case will help nokia the hindu. President pranab mukherhjee on wednesday cited the recent mumbai high court judgement in favour of vodafone in a taxation case as an example that. Rules and guidance supreme court of the united states. The honble supreme court of india judgement the supreme court of india order may 2007 based on raghavan committee recommendations reproduced verbatim from the supreme court of india website item no. Disputes between bt and each of gamma and vodafone in. Shares of vodafone idea fell by more than 23% on friday after indias apex. Csos 3832017 let the plaint be registered as a suit. The govt questioned supreme courts authority over ruling against the firstcome firstserved policy but stayed away from challenging the cancellation of 122 licences issued during the tenure of a raja as telecom minister. In a detailed examination of the transaction documents, the revenue as. High court judgment dated 8th september 2010 in the tax liability matter of. Pdf a goal of transfer pricing may be to maximize after tax revenue besides reduction in the total. An analysis of the supreme courts judgment in vodafone. In a full reversal of the earlier decision against vodafone in the bombay high court, vodafones appeal.
Radhakrishnan vide 2 concurring judgments, set aside the controversial bombay. India approves initiation of nonbinding conciliation process. Analysis of the vodafone supreme court order in a landmark judgment passed on 20th january 2012, a three judge bench of the supreme court comprising of chief justice of india honble justice s. This, they said, is since voda ideas total licence fee outstandings including interest and penalties. Landmark supreme court verdict in the vodafone case. The courts power is only to grant or refuse an application for release from the undertaking. This was also ignored, so mr monteith won the judgement by default. Bse limited phiroze jeejeebhoy towers, dalal street, mumbai 400 001 yesterday i. Aadhaar linking mandatory pan itr filing welfare schemes aadhaar. Hutchison essar limited subsequently renamed vodafone essar ltd. Why supreme courts judgement has pitted vodafone idea. That the court has now done so has been welcomed as much needed respite in bad times. Ethernet appeal bts appeal to the court of appeal of the cat judgment in the ethernet dispute.
Guide to law laid down by the supreme court in vodafone international holdings b. The court also asked the it department to return rs 2,500 crore deposited by vodafone, in compliance of its interim order, within two months along with 4 per cent interest. The supreme court s judgement thursday backing the governments definition of adjusted gross revenue may hasten further consolidation, paving the way for a twooperator telecom market, comprising reliance jio and bharti airtel, with vodafone ideas very survival at stake, analysts said. In a landmark ruling in the supreme court today, vodafone won against the tax department. The supreme court of india rules in favor of vodafone in a.
Vodafone had also challenged the constitutional validity of the retrospective amendment made in 2008 to section 201 and 191 of the i. The department, in a twitter post, said, in the case of one of the cases of vodafone, it has been decided to file slp before honble supreme court against the order of mumbai hc. Allaying investors fear, president pranab mukherjee on tuesday said the bombay high court verdict in the vodafone taxation case, if prevailed, would help finnish phone manufacturer nokia as. The simple reason being that the bench deciding the vodafone case is a 3 judge bench whereas it was a 5 judge bench in the 25 year old mcdowell case that came down heavily on tax avoidance. In january 2012, in a landmark judgment, the indian supreme court sc, in the case of vodafone nl 341 itr 1 ruled that, under the indian tax laws itl, the transfer of shares of a company incorporated outside india or an interest in an entity registered outside india would not be taxable. Its a fight for survival for vodafone idea yet again. Even more importantly, it is heartening that the court has taken what it is submitted is the correct view especially on the facts of vodafones case.
Supreme court to hear vodafone transfer pricing case. Cnbc tv18s payaswini upadhyay gets quick reactions from experts on what this ruling means for foreign investment in india. Published on fri, jan 20,2012 16 24, updated at fri, jan 20 at 16. In its dispute referral, gamma referred to the supreme ourts judgment in the i8x numbers appeal1 but noted that judgment was of limited relevance given it related to the application of ofcoms dispute resolution powers in a situation where there were no specific regulatory. Union of india an analysis of the judgment the last decade has viewed the tremendous growth in the mergers and acquisitions and it also witnessed the growth in legal disputes regarding tax to be paid on capital gains arising out of such matters. Vodafone idea shares tumble 23% after india orders it to pay billions. To implement the courts order, orloff filed a complaint with the commission under 208 of the act.
Pdf transfer pricinga case study of vodafone researchgate. The supreme court judgment in the 08x numbers appeal. However, the supreme court noted that vodafone could approach the high court if it was ruled against. Supreme court tells telecom companies to pay dues in 3 months. Kapadia, honble justice swatanter kumar and honble justice k. In a full reversal of the earlier decision against vodafone in. Vodafone ruling supreme court shows the way the hindu. The govt questioned supreme court s authority over ruling against the firstcome firstserved policy but stayed away from challenging the cancellation of 122 licences issued during the tenure of a raja as telecom minister. In this a landmark decision, the supreme court reversed the decision of the bombay high court and held that the indian tax authorities did not have territorial jurisdiction to tax the offshore transaction, and therefore, vodafone was not liable to.
The court of appeal held that the cfc legislation can be interpreted so as to be compatible with the ec treaty. The apex court also said the rs 2, 500 crore which vodafone has already paid should be returned to vodafone with interest. Prior to supreme court ruling on vodafone, there was a sense of cynicism among the global. But will the supreme courts verdict settle the age old tax planning vs. Supreme court must rule for the taxpayer in vodafone. Vodafone then filed a writ petition 25502007 before the bombay high court for setting aside the notice dated 19. Oct 26, 2019 supreme court tells telecom companies to pay dues in 3 months. The supreme court of india recently issued a landmark judgment in the muchawaited vodafone case. The judgment is available now for download from the sc website or via a copy hosted by legally india. The muchawaited judgment delivered by the bombay high court on sep tember 8, 2010, in the case of vodafone international. Vodafone idea limited idea 532822 we write further to our communication of 16 march 2020. Chief justices yearend reports on the federal judiciary. Supreme court s held ruling to set aside the bombay high court judgement asking the company to pay income tax of inr 11,000 crore.
The complaint was on behalf of orloff alone, not the class identified in the district court. Mar 02, 2016 in this a landmark decision, the supreme court reversed the decision of the bombay high court and held that the indian tax authorities did not have territorial jurisdiction to tax the offshore transaction, and therefore, vodafone was not liable to. Agreeing with the findings of the drp as mentioned above as well as relying on the judgment of honble supreme court in the case of core healthcare 298 itr 194, the a. The supreme court has finally pronounced the judgement on a bunch of petitions challenging the constitutional validity of aadhaar as 4. Jan 22, 2012 that the court has now done so has been welcomed as much needed respite in bad times. Vodafone idea limited idea 532822 bse limited phiroze jeejeebhoy towers, dalal street, mumbai 400 001 further to our communication dated 21 january 2020 with respect to the filing of an application for modification of the supplementary order of the honble supreme court dated 24 october.
Reactions to the supreme court decision on vodafone the new. In the later proceedings before the inner house pc world did not challenge the sheriffs finding that the contract of sale had been rescinded. In this article, we will discuss in detail about the key takeaways from the judgement on aadhaar. Vodafone judgement shows rule of law prevails in india. Learned counsel for the plaintiff prays for and is permitted to file the deficient court fees within two weeks. Prior to supreme court ruling on vodafone, there was a. On 20 january 2012, the supreme court of india delivered its eagerly anticipated decision in vodafone international holdings bv v union of india civil appeal no. Jan 21, 2012 the supreme court of india after hearing the matter for over two months, has delivered its much awaited landmark 275page decision, involving taxability of a transaction between two nonresident companies having no presence in india, in relation to transfer of shares of an overseas company, in favour of vodafone international bv vih to hold that the transaction is not taxable in india and. Nov 14, 2017 vodafone ruling supreme court shows the way.
Final determination to resolve disputes regarding bts average porting conveyance charges 1 dcp donor communications provider. Forwarding supreme court judgement with epfo official circular regarding allowing members of eps95the benefit of actual salary in the pension fund exceeding wage limit of rs. In one of the most high profile cross border tax litigation involving taxability of a. Supreme court issues landmark judgment in vodafone case. Apr 18, 2020 the supreme court has finally pronounced the judgement on a bunch of petitions challenging the constitutional validity of aadhaar as 4.
On 11 february 2007, a sale purchase agreement spa was entered into between the petitioner and htil under which. In march 2000 vodafone acquired the mannesmann ag group of companies and as part of this process established a wholly owned luxembourg subsidiary, vodafone investments luxembourg sarl vil. The supreme court of the united kingdom parliament square london sw1p 3bd t. But from that qualification it follows that the prevailing assumption that this judgment is a complete. The judgment highlights that the hutchinson transaction in which vodafone acquired a single share of an htil subsidiary was a valid structural transaction and the indian authorities had no jurisdiction to tax such an offshore transaction.
The supreme court on thursday permitted a chairman to be appointed to a second arbitral panel in the rs 11,000crore vodafone income tax dispute, but specified that proceedings would not begin till the delhi high court heard out any government objections. Government mulls relief vodafone idea and bharti airtel, the two telcos affected most by the sc order with pending licence fee and spectrum usage charge suc dues of rs 39,000 crore and over rs 41,000 crore, respectively, declined to comment on the threemonth deadline. In a strongly worded judgement, the supreme court rejected telecom networks. Issue summons in the suit to the defendants by all modes including dasti, returnable for 26th october, 2017. Judgment of the court grand chamber of 8 june 2010. Free downloadable judgments laws in india, supreme court. O is directed to delete the addition made on account of disallowance of interest expenditure us.