Vodafone Idea’s Stock Rises 2.5% After Bombay High Court Orders Rs 1,128 Crore Tax Refund
On November 9, shares of Vodafone Idea witnessed a 2.5 percent increase in early trading as the Bombay High Court directed the income tax department to refund Rs 1,128 crore, which the telecom operator had paid in dues for the year 2016-17.
As of 10:19 am, Vodafone Idea was trading 1.5 percent higher at Rs 13.85 on the National Stock Exchange.
The court declared the assessment order against the telecom major as “unsustainable and time-barred.” This assessment order had been issued by an income tax officer on August 31, two years after a dispute resolution panel had issued directions to Vodafone Idea.
Vodafone Idea challenged the order, asserting that the assessing officer failed to render a final decision within the stipulated 30-day period.
The court also recommended an inquiry into the actions of the assessing officer due to “failure to abide by the legal mandate and the lack of diligence on the part of officials concerned.”
The court emphasized the need for strict action against those responsible for the negligence and lethargy that led to a significant loss for the exchequer and, consequently, the citizens of the country. Additionally, the court directed that the process be completed within the next 30 days.
