I-T files review petition against the Vodafone order in SC
Published on Fri, Feb 17, 2012 at 16:32 | Source : CNBC-TV18
Updated at Tue, Feb 21, 2012 at 08:21
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I-T files review petition against the Vodafone order in SC
The I-T department has filed a review petition against the Vodafone order in the Supreme Court. The plea says the SC ruling did not appreciate 67% controlling interest in Hutch Essar (HEL), reports CNBC-TV18's Aakanksha Sethi.
The I-T department has filed a review petition against the Vodafone order in the Supreme Court. The plea says the SC ruling did not appreciate 67% controlling interest in Hutch Essar (HEL), reports CNBC-TV18's Aakanksha Sethi.
The income tax department has asked the Supreme Court to reconsider its judgment and has asked for review. The grounds on which they say this should be done is, first of all the central to this case has been Section 9 of the IT act.
They also say that Section 9 has not been correctly interpreted because it should not have been given limited effect. Also, they say that the share purchase agreement has not been correctly appreciated and it has not been recognized that HEL does have property rights in Hutchison Essar. Infact the Supreme Court in its judgment had said that HEL does not have property rights, but the tax department goes on to say that they did have property rights and this can be appreciated from the share price agreement.
They held the right of first refusal, call options, settlement agreements etc which go on to prove that these translate into property rights in HEL and since they do have property rights the fact that the Supreme Court has said that this is not true should be relooked at.
The other thing that they have said is that in the first round of the writ petition that was filed in the Bombay High Court, Vodafone did not reduce the SPA and that should be held against them and that has also not been considered.
