The most awaited Cross Border Tax judgment in the matter of Vodafone is out and the Supreme Court of India has today set aside the Bombay High Court Judgment asking Vodafone to pay Income tax of USD 2 Bn.
As a Landmark Judgment, the matter was finally decided by the three Judge Bench of Supreme Court of India today i.e. on 20th January, 2012 in favor of Vodafone stating that “the government has no jurisdiction over Vodafone''s purchase of mobile assets in India as the transaction took place in Cayman Islands between HTIL & Vodafone,” The Tax Department has also been directed to return the upfront amount paid by Vodafone (Rs 2500 crore) with interest.
