Vodafone files petition against new I-T dept move

There is an ongoing rift between U.K.-based Vodafone Group PLC and the Income Tax department, Vodafone has now filed a fresh writ petition against Income Tax department in the Bombay High court challenging a notice to them in the month of May-2010. In that notice, the Income Tax department had termed Vodafone as an agent of Hutchison Telecom from whom Vodafone purchased the 67 per cent stake to enter the Indian markets.

In return Vodafone issued and statement and elaborates that Income Tax department cannot treat Vodafone as agent as the basic issue of jurisdiction is contested by them. This matter is under apeal in the Supreme Court and any action of this sort at this point of time will be premature on the part of the department.

Meanwhile sources at the I-T dept are not too surprised by the latest move. According to them they are treating Vodafone as agent in default on behalf of Hutchison as the tax department is unable to act against Hutchison who has no presence in India. The I-T dept is also hopeful that the latest case will have no bearing as the SC is already hearing the matter.

So now the case will be fought at two levels, the Bombay HC and the Supreme Court where Vodafone's appeal against the I-T department’s jurisdiction is already pending for hearing. Clearly Vodafone is not willing to give up without a fight despite suffering several setbacks in the Indian courts.