DMD Advocates Represent Vodafone As Income Tax Department Withdraws INR 8,500 Crore Transfer Pricing Case Before Supreme Court
DMD Advocates Represent Vodafone as Income Tax Department Withdraws INR 8,500 Crore Transfer Pricing Case Before Supreme Court
The leading law firm in India, DMD Advocates, represented Vodafone India Services Pvt. Ltd. in its long-standing transfer pricing litigation against the Income Tax Department. With a focus on complex tax disputes and corporate advisory, DMD Advocates brought nearly a decade of legal expertise to secure a favourable outcome for Vodafone.
Income Tax Department Withdraws INR 8,500 Crore Transfer Pricing Case Against Vodafone Before Supreme Court
The Income Tax Department has withdrawn its long-pending INR 8,500 crore transfer pricing appeal against Vodafone India Services Pvt. Ltd., bringing an end to litigation that has been ongoing since 2016 in the Supreme Court. The withdrawal was permitted by the Supreme Court after the Department filed an application seeking withdrawal of the appeal.
Background of the Dispute
The dispute arose from FY 2007–08 following Vodafone’s sale of its Ahmedabad-based call centre business, formerly known as 3 Global Services Private Limited, to Hutchison Whampoa Properties (India) Limited as part of an internal restructuring. The department alleged that the transaction involved the transfer of call options and intangible rights of commercial value to a related entity, qualifying it as an international transaction under Indian transfer pricing rules. On this basis, the department sought to add INR 8,500 crore to Vodafone’s taxable income, alleging that the sale had not been conducted at an arm’s-length price.
High Court Ruling in Vodafone’s Favour
In October 2015, the Bombay High Court ruled in favour of Vodafone, setting aside the ITAT’s order and quashing the tax demand. The Court observed that the transaction was domestic in nature, involving two Indian entities, and lacked any cross-border element necessary to invoke transfer pricing provisions. The Court concluded that the income tax department had overreached by invoking transfer pricing provisions in the absence of a cross-border component.
Supreme Court Appeal and Withdrawal
The Income Tax Department challenged the High Court’s ruling before the Supreme Court in 2016. The appeal, however, remained pending for nearly a decade before being withdrawn in November 2025.
DMD Advocates’ Representation Team
Vodafone was represented by DMD Advocates, led by Ms. Fereshte Sethna (Founder & Managing Partner, Mumbai), Ms. Anuradha Dutt (Founder & Managing Partner, Delhi), and Vijayalakshmi Menon (Founder & Senior Partner), along with Mrunal Parekh (Partner), Sherry Goyal (Associate Partner), and Associates Prakalathan B., Mohit Tiwari, Naomi Ting, Sushmita Chauhan, and Tarang Saraogi.
Conclusion
The withdrawal of the appeal marks a significant victory for Vodafone and underscores the importance of precise interpretation of transfer pricing provisions in India. DMD Advocates’ strategic guidance and deep understanding of domestic and international tax law played a pivotal role in achieving a favourable outcome, bringing closure to nearly a decade-long dispute.
DMD Advocates is a leading full-service law firm in India with a focus on solutions through a unique holistic approach that blends its expertise and decades of experience in core practice areas – litigation & arbitration, taxation, corporate, regulatory, competition, and intellectual property rights. We have a team of more than 100 lawyers, including 30 partners/directors, and a pan-India presence, with principal offices in New Delhi & Mumbai and associate offices in Ahmedabad, Bangalore, Chennai, Cochin, Kolkata, and Bhubaneswar.
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