Income Tax Appellate Tribunal nixes tax claim on Vodafone rights issue

New Delhi: In a relief to Vodafone India, the Mumbai bench of the Income Tax Appellate Tribunal has deleted the addition of Rs 795 crore by tax authorities as income received from nine Mauritian entities that subscribed to the company’s rights issue in assessment year 2006-07.

The tribunal stated that the identity, creditworthiness and genuineness of the transaction was validated by the Supreme Court and therefore, the assessing officer cannot question them.