I-T Issues Notice to Voda Seeking Returns Reassessment

NEW DELHI: Tax authorities have issued a fresh notice to UK-based telecom giant Vodafone seeking reassessment of tax returns for two years.

The notice has been served under Section 148 of the Income Tax Act which seeks to deal with income that has escaped assessment.

Sources said the notice seeks additional information from Vodafone for two years, 2009-10 and 2010-11.

While a Vodafone spokesperson declined to comment, sources said the company was studying the notice to ascertain the basis of the move.

Vodafone has faced several tax cases in the past relating to transfer pricing and capital gains.

The government and Vodafone have mutually agreed to extend the deadline for appointment of the third arbitrator to resolve the Rs 20,000-crore tax dispute case with Vodafone.

Earlier, in January, the government had decided against appealing the Bombay High Court order that absolved Vodafone of Rs 3,200-crore tax demand in a transfer pricing case.

“The government will not appeal in the Supreme Court the October 10 order of the Bombay High Court in the Vodafone case,” Telecom Minister Ravi Shankar Prasad had said after the Union Cabinet took a decision in this regard.