Delhi High Court asks Vodafone to reply to IT department showcause notice in 2 days

QUICK PILL

• The Delhi High Court has asked Vodafone to reply to show cause notice from the Income-Tax Department on Rs 14,200-crore rupees tax demand.
• Vodafone has filed a plea against an Income-Tax department notice, asking the company as to why its financial records for financial year 2011-12 should not be subjected to a special audit.

The Delhi High Court on Monday asked telecom giant Vodafone to reply to the show cause notice by the Income Tax department by 23 March. The High Court has warned that an extension will not be given.

Vodafone has filed a plea against an Income-Tax department notice, asking the company as to why its financial records for financial year 2011-12 should not be subjected to a special audit.

Earlier, the Income-Tax Department had issued a reminder to Vodafone over its Rs 14,200-crore rupees tax demand.

The department had sent a notice to Vodafone International Holdings BV in this regard as the tax is due from the acquisition of 11 billion dollar Hutchison Whampoa's India telecom business in 2007.

Vodafone says that the tax demand relates to a dispute that is currently the subject of international arbitration and no tax was due as the transaction was conducted offshore.

-- PTI