The Bombay High Court on Friday dismissed a writ petition filed by Vodafone India questioning the jurisdiction of a transfer pricing order passed by the income-tax department relating to transactions at the company’s call centre business.
The court did not go into the merits of the case and only ruled on the jurisdiction of the tax authority in transfer pricing cases.
“The Bombay High Court’s decision today focused solely on procedure and not on the merits of Vodafone’s case. The court ruled that the matter should be looked at by the tax tribunal in the first instance, rather than passing directly to the Bombay High Court. The high court also extended the stay, on the final assessment order, already granted by the court and the company now has almost twelve weeks to review its options,” a Vodafone Group spokesperson said.
In February 2012, Vodafone had challenged the jurisdiction of the income-tax department in issuing a transfer pricing order issued in December 2011 that sought to add Rs. 8,500 crore to its taxable income.