Bombay High Court asks I-T dept to refund Rs 1,128 crore to Idea by Vodafone within 30 days"

 "Bombay High Court asks I-T dept to refund Rs 1,128 crore to Idea by Vodafone within 30 days"

 

In the Vodafone Idea tax refund case, the Bombay High Court ordered the tax authorities to reimburse Vodafone Idea for Rs. 1,128 crore, citing procedural violations on the side of the income tax department. The court requested that the assessment officer be held accountable for any losses incurred by the exchequer. The procedure is to be finished in 30 days, under the court's directive.

The income tax department has been ordered by the Bombay High Court to reimburse Vodafone Idea for taxes of Rs 1,128 crore. According to the Times of India, the court decided on Wednesday that the assessment judgment against the financially troubled telecom giant was "unsustainable" and "time-barred." Against a flat Mumbai market, Vodafone Idea shares were up 1.4% at Rs 13.83 today."

 

"The issue concerns the telecom company's request for reimbursement after the submission of its assessment year 2016–17 results. Dispute Resolution Panel (DRP) issued a ruling on March 25, 2021, in response to the telecom major's request for a refund. The order was placed on the Income Tax Business Application (ITBA) site on the same day. But in August of this year, two years later, an assessing officer gave the final order.

The Mumbai High Court said that the assessment officer's negligence resulted in a significant loss to the exchequer and urged both an investigation and strong penalties against them. The procedure is to be finished in 30 days, under the court's directive.

Vodafone Idea filed a suit with the High Court in June of this year, challenging the income tax assistant commissioner and the central processing center in Bengaluru for their alleged inability to reimburse excess tax payments.

Vodafone Idea argued that the evaluating officer did not issue the final ruling in accordance with the DRP's instructions within the required 30-day period. Thus, a refund with interest is due. Senior counsel for the firm said that the revenue reported by Vodafone Idea is presumed approved by the I-T department after the DRP order is uploaded and accessible, provided that no order is passed in a given month. As a result, the petitioner is entitled to a refund of excess tax.

"The IT department meanwhile contented that assessing officer obtained the 2021 order on August 23, 2023, since that was the start of Faceless Assessment Regime and consequently within a month passed the order."