Vodafone International Holdings v. Union of India
Taxation LawShort summary
The Supreme Court held that the Income Tax Department had no jurisdiction to tax Vodafone's acquisition of a stake in Hutchison Essar, since the transaction was a sale of shares between two foreign companies outside India, and did not amount to a transfer of a capital asset situated in India. The Court rejected the 'look through' approach for offshore share...
The Supreme Court held that the Income Tax Department had no jurisdiction to tax Vodafone's acquisition of a stake in Hutchison Essar, since the transaction was a sale of shares between two foreign companies outside India, and did not amount to a transfer of a capital asset situated in India. The Court rejected the 'look through' approach for offshore share transfers absent specific statutory authority. The ruling prompted Parliament to introduce retrospective amendments via the Finance Act, 2012.
Case brief
Log in to read the full case brief. Payment access can be added here later without changing the reading flow.