Vodafone Relief for Vodafone as Supreme Court orders government to pay Rs 833 cr in tax refund
New Delhi/IBNS: The Supreme Court on Wednesday directed the Income Tax department to pay Rs 833 crore, as tax return, to Vodafone Idea, against the arguments that the amount be deducted from the AGR (adjusted gross revenue) which the telecom company still owes to the government, a media report said.
Vodafone Idea has paid Rs 7,854 crore of its AGR dues but still has to pay Rs 50,399 crore to the government.
The ruling has come as a huge relief to the cash strapped teleco which is struggling to pay the AGR.
A Division bench of Justices RD Dhanuka and Madhav Jamdar Supreme Court said that the IT department cannot withhold the tax refunds in the anticipation of future demands, said the report, an NDTV report said.
On June 26, the Bombay High Court had asked the Centre to refund Rs 833 crores, after an appeal by Vodafone Idea for a refund of more than Rs 1,000 crore, the report added.
On Wednesday, the Supreme Court upheld the Bombay High Court's order and dismissed the IT Department's appea, the report saidl.
Vodafone Idea, Bharti Airtel and Tata Telecom together owe around Rs 1.6 lakh crore in AGR to the government.
The telecom companies had requested a 20 year window to pay the AGR, which the government had also agreed, but the top court rejected the appeal saying that the telecom firms are the only ones to profit during the covid induced lockdown and have to pay their dues immediately, the NDTV report said.
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