Union Government filed Review Petition in Supreme Court in the Vodafone Tax Case

The Union government on 17 February 2012 filed a review petition before the Supreme Court in the highest court’s landmark verdict which had held that the telecom giant Vodafone is not liable to be taxed on its $11.2-billion acquisition of Hutchison’s Indian telecom assets.

The Government in its plea maintained that the Supreme Court failed to appreciate the consequences of its judgement on the steps taken by the Government to promote tax transparency and fight tax evasion.
Supreme Court in its verdict on 20 January 2012 ruled that there was no tax to pay by the Vodafone on the Vodafone-Hutchison deal.

The Income Tax Department had raised a demand of $2.6 billion (Rs 11,297 crore) on the 2007 Vodafone-Hutch deal. Vodafone which had moved to the Supreme Court in the case got the Supreme Court’s verdict in its favour. The Income Tax Department had later termed the judgement erroneous.