I-T Dept yet to revert on jurisdiction in Vodafone case

It has been almost six months since the Supreme Court directed the taxman to revert on jurisdiction in the high-profile Vodafone case. But the order seems no where in sight as yet. CNBC-TV18's Ashwin Mohan reports.

Here is a verbatim transcript of the exclusive interview with Ashwin Mohan on CNBC-TV18. Also see the accompanying video.

It was back in January 23, 2009 when the Supreme Court had first directed the Income Tax (I-T) Department to revert on their jurisdiction tax dispute. There is no sight of the order till now. Here are some reasons why this order could have been delayed according to sources. First, the I-T Department is unlikely to pass this crucial order on jurisdiction in July. Secondly, the I-T department is currently working on procuring information on this transaction from related third parties. There are indications that the I-T Department had not received any substantial material or documents from Vodafone regarding this transaction before the Supreme Court orders so that could be one of the reasons for the delay.

Meanwhile, Vodafone  is continuing to interact with the taxman. We understand from our sources that the next hearing is within the next 10 days. An important aspect is the possibility of a composite order. The I-T Department has not yet taken a final call on the possibility of a composite order.  A Composite order would be a combination of the jurisdiction as well as the entire quantification of tax liability. Experts also add that this order could have an impact on other similar cross broader transactions like AT&T, Vedanta, and Sesa Goa. So, clearly the ball is in the taxman's court and Corporate India is waiting and watching.