Publish Date: Oct 10 2014 8:36PM | Updated Date: Oct 10 2014 8:36PM
MUMBAI: In a victory for Vodafone, the Bombay high court on Friday allowed a petition filed by the cellular service major challenging the order of an Income Tax authority in a transfer pricing case which held that issuance of shares in a capital financial transaction could be considered taxable income. The HC held that it cannot be considered income.
The case was of a 2009-10 assessment by Income Tax department in share transfers made from Vodafone India to its Mauritius group company.
There was a shortfall of about Rs 1,300 crore, the IT department had suggested and said such under-pricing would amount to transfer of benefit and hence arms length pricing could be determined for such share transfers.