SC dismisses Vodafone’s ₹4,760-cr tax refund claim

The Supreme Court on Wednesday upheld the Income Tax Department’s action against Vodafone withholding ₹4,760 crore of refund, pending scrutiny of assessments. However, the court directed the government to refund ₹733 crore for assessment year 2014-15 (fiscal year 2013-14) for which assessment had been completed and refund generated.

The appeal in the SC related to the Delhi High Court’s order in a matter wherein Vodafone prayed for expeditious processing and granting of refund for AY 2014-15 to AY17-18. The total amount involved was ₹4,760 crore. During deliberations before the High Court, the I-T Department had objected to the writ petition stating that processing of refunds and pending scrutiny proceedings were on account of legitimate ongoing proceedings.