Vodafone, Income Tax Department In Battle As Company Seeks Refunds While Taxmen Claim Previous Demands

Vodafone India and the Income Tax Department are battling it out as Vodafone seeks refunds while the Income Tax Department is laying claim on previous demands.

From assessment year 2006-07 to 2013-14, the Income Tax Department has raised demands of Rs 1842 crore and these demands under different sections have been stayed by the Income Tax Appellate Tribunal (ITAT).

These include Section 250, Section 143, Section 143 (3), and Section 263, all of which have been stayed by the ITAT.

As per tax assessment in the Mumbai circle, in 2010-11, the demand of assessment year was Rs 2127 crore adjusted against refund on October 11 by the Centralised Processing Centre (CPC) although the demand was stayed by the ITAT.

The refund was approved but the refund was not issued due to an error by the Centralised Processing Centre for Income Tax Returns (CPC-ITR). A complaint was lodged for the same by the IT Department.

Thereafter, for 2018-19, a scrutiny is pending and therefore the refund has been withheld under Section 281 B of the Income Tax Act. Since the scrutiny is pending no refund has been given.

After the Supreme Court judgment on Adjusted Gross Revenue (AGR), Income Tax officers are in a fix about how to adjust refunds with AGR payments, since refunds are pending.