Vodafone said on Friday it had filed a writ with the Bombay High Court defending itself against a new step by Indian tax authorities to treat the company as an agent of the seller in its 2007 purchase of Hutchison Whampoa Ltd's mobile business in the country. Vodafone's writ was filed under Section 163 of the IT Act.
"Vodafone contends that the key issue of jurisdiction (as to whether the Indian tax office can tax the transfer of a foreign company's shares between two non-residents) is currently under appeal to the Supreme Court of India," Vodafone said in a statement.
"Hence any action which seeks to treat Vodafone as an agent of Hutchison is misguided and premature," it said.
Sources at the Central Board of Direct Taxes said that the latest writ has nothing to do with the ongoing case, adding that the department would go ahead and issue a demand notice to Vodafone on October 24. Sources said the I-T department will reply to the new Vodafone plea on October 21. The department does not see any impact of the fresh writ on the Rs 12,000 crore TDS case, to be heard by the Supreme Court on October 25.
What remains to be seen is will the fresh writ be entertained by the Bombay High Court on October 27.
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