Voda-Idea: Order to refund tax of Rs 1128 crore to Vodafone-Idea, High Court becomes strict on Income Tax Department

The Bombay High Court has directed the Income Tax Department to refund Rs 1,128 crore paid as tax to Vodafone Idea Ltd for assessment year 2016-17. The high court, in its judgment on Wednesday, said the assessment order passed by the department in August this year was time bound and hence could not be sustained.

A division bench of Justices KR Sriram and Neela Gokhale also took a strong stand against the assessing officer for showing ‘laxity and laxity’ in not passing the final order within the stipulated time of 30 days and thereby causing huge loss to the exchequer and the public. Went.

The court delivered its verdict on a petition filed by Vodafone Idea Ltd, which claimed that the Income Tax Department failed to refund the amount paid for assessment year 2016-2017, which was more than the legal tax on its income. .

The bench, in its order, said Vodafone’s case is ‘quite prima facie’ and it is forced to observe the complete indifference and negligent attitude of the concerned assessing officer in the discharge of his duties in accordance with the provisions of the Income Tax Act.

The order said, ‘Any negligence on the part of officials entrusted with the responsibility of working within the strict ambit of law affects the exchequer and has far-reaching implications on the prosperity and economic stability of the country. ‘

Directing a copy of its order to be sent to the Union Finance Ministry, the high court said, “Strict action should be taken against those responsible for the negligence and laxity which has caused huge loss to the public exchequer and the citizens of this country.”

According to the petition, the assessing officer passed a draft order relating to the assessment year in December 2019, against which the company filed objections before the Dispute Resolution Panel (DRP) in January 2020. In March 2021, DRP issued some instructions.