| | NEWS FLASH
| The Supreme Court on Friday ruled in favour of Vodafone in the $ 2.5 billion tax dispute. The court has ruled that the investment by Vodafone is a bonafide foreign direct investment (FDI) and there is no tax liability on Vodafone for the deal.
In 2007, Vodafone, a UK-listed company, bought 67 per cent stake in Hutchison Essar, a mobile phone operator in India, for about 55,000 crore or $11.5 billion.
The income tax department had argued that the sale was taxable because the assets acquired by Vodafone were based in India. Vodafone claimed that India cannot levy taxes because the transaction was made between non-Indian companies outside the country.
In 2008, the Bombay High Court had ruled against Vodafone in the tax case. | |
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