The Income Tax Appellate Tribunal (ITAT) granted a stay on Vodafone Group Plc entity Vodafone India Services Pvt. Ltd. (VISPL), asking the company to pay Rs.230 crore towards a disputed tax demand. The tax tribunal’s Mumbai bench in its order deemed fit to grant a stay on collection of the impugned tax & interest demands for the assessment year 2014-15 on condition that the assessee company pays Rs.230 crore or 20% of disputed tax demand within 30 days. The tribunal rejected the VISPL counsel’s submission that a guarantee of Rs.3538.48 crore was provided by its ultimate parent, Vodafone International Holdings BV as it is not relevant to the present litigation & belongs to the specification of the assessment year 2008-09. VISPL nominated entity, CGP India Investments was a Mauritius-based company owned by CGP Cayman Islands, via which Vodafone’s holdings were routed in Vodafone India. CGP-Cayman Islands was able to increase its shareholdings in Vodafone India as Scorpio Beverages owned substantial shareholding in Telecom Investments India Pvt. Ltd. that holds significant equity capital of Vodafone India.
Source: Economic Times