In a relief for Vodafone-Idea, as it grapples with massive AGR dues, the Supreme Court on Wednesday directed the Income-Tax department to refund Rs 833 crore that had been pending for FY15 assessment year.
Vodafone Idea had sought Rs 4,759.07 crore in tax refund from for FY15, FY16, FY17 and FY18. However, the tax department had kept refunds in abeyance given that they were contested and under scrutiny.
The order comes two weeks after the Bombay High Court directed the same, upholding the telco’s plea for higher returns. The I-T department had challenged the Bombay High Court's order on the same.
Earlier, in October 2019, the I-T department had passed an assessment order determining the refund amount at Rs 733.8 crore. However, Vodafone filed a petition seeking a refund of Rs 1,009.43 crore, which the Supreme Court accepted on April 29. The I-T department then issued a rectifying order but deducted 176.39 crores over pending dues. This prompted Vodafone to seek the original refund amount, moving the HC.
The apex court on Wednesday observed that the I-T department did not have the authority to withhold tax refunds in anticipation of future demands and directed the department to refund Rs 833 crore.
The order comes a day after the court reserved its order on allowing telecom companies to make staggered repayment of their AGR dues, of which Vodafone-Idea alone owed Rs 50,399 crore.
