Issuing an ultimatum that extension would not be granted to file a reply, the Delhi High Court on Monday asked Vodafone to reply to the show cause notice by the Income-Tax department on March 23. 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. Also Read - Jio maintains lead in 4G download speed, Vi in upload in May: TRAIAlso Read - Fake WhatsApp message claims free internet for three months, don't fall for it
Earlier, the Income-Tax Department had issued a reminder to Vodafone over its 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.
Senior advocate P Chidambaram, appearing for Vodafone, contended that issuance of show cause notice to refer their accounts to special audit was done to save the department from limitation and to pass an assessment order by March 31. He said the company was willing to waive defense of limitation and the IT department can take its own time to assess their accounts without referring it for special audit.
The court then asked the government to take instructions on Vodafone s submission and listed the matter for hearing on March 21.
With additional inputs