The Supreme Court has asked Vodafone to appear before the Income Tax (IT) department which had instructed the company to pay penalty in the $2 billion tax case relating to the telecom major’s stake purchase in Hutchison Essar.
Meanwhile, the court also clearly stated that if the IT Department passes any order for penalty, it would not be enforced until any further order is passed by the Supreme Court, as the main matter of tax dispute is still pending.
During the proceedings, the Supreme Court allegedly told Vodafone that the tax penalty is at an initial stage because only notices have been issued till now by the IT Department to the company.
Earlier, the IT department had issued a notice to Vodafone in March 2011, stating penal action would be initiated against the company in the tax case.
