HC upholds ITAT order in Birla telecom unit case

Mumbai: The Bombay High Court has upheld an order of the income tax tribunal, which said that Aditya Birla Group’s telecom unit did not violate rules while receiving an investment of Rs 2,098.25 crore from a subsidiary of global private equity firm Providence Equity Partners.

The high court said in its order last week that the transaction was genuine and could not be considered round tripping of funds, providing major relief for Aditya Birla Telecom, a unit of erstwhile Idea Cellular.

The high court was hearing a petition filed by the Commissioner of Income Tax on a dispute that had its genesis about a decade ago.