Income Tax Appellate Tribunal rejects addition of Rs 7,950 million tax claims on Vodafone Idea’s rights issue

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has rejected the addition of Rs 7,950 million tax claims by income tax (IT) department on Vodafone Idea as income received from nine Mauritian entities that subscribed to Vodafone Idea’s rights issue in assessment year 2006-07.

According to the tribunal, the identity, creditworthiness and genuineness of the transaction were validated by the Supreme Court (SC) and therefore this cannot be questioned by the assessing officer.

Further, the tribunal added that the Bombay High Court had settled to take SC’s judgment into cognisance or else it would amount to judicial indiscipline.