Breather For Vodafone Idea as Supreme Court Orders Income Tax Dept to Refund Rs 833 Crore

New Delhi: In a huge relief for distressed telecom operator Vodafone-Idea, the Supreme Court on Wednesday directed the Income Tax Department to refund taxes to the tune of Rs 833 crore. The order brought respite to the cash-strapped telecom major which still owes Rs 50,399 crore of adjusted gross revenue (AGR) dues to Centre. Also Read – Rajasthan Political Crisis: Supreme Court to Hear Assembly Speaker’s Plea at 11 AM Today

The I-T department argued in court to adjust the refund against the dues. However, the apex court upheld the Bombay High Court order saying the tax department did not have the power to withhold refund against undetermined future demands. Also Read – No Need to Meet Tax Officer in Case of Scrutiny Notice; Use Faceless Assessment: I-T Dept

Vodafone Idea has already paid nearly Rs 7,854 crore of its AGR dues to the government. Also Read – Vikas Dubey Encounter: ‘Will Reconstitute Probe Commission’, UP Government Tells Supreme Court

Earlier during the Tuesday hearing, the SC asserted that it will not hear “even for a second” the arguments on reassessment or re-calculation of the AGR dues of telcos like Vodafone and Airtel, that run into a mounting sum of Rs 1.6 lakh crore.

The apex court also said it was not a reasonable proposal that a period of 15 to 20 years be given to the telecom majors to pay their dues.

Vodafone Idea and Bharti Airtel have been facing a financial crisis since the Supreme Court rejected their pleas seeking review of the AGR judgement and ordered them to pay the AGR dues and penalties to the exchequer.

The payments included Rs 53,000 crore by Vodafone Idea, Rs 35,500 crore by Bharti Airtel and Rs 14,000 crore by the now-defunct Tata Teleservices.