Attorney General Asks Income Tax Dept To Not Appeal Against Vodafone Tax Ruling

Attorney General Mukul Rohatgi has asked the Income Tax Department not to appeal against the Bombay High Court judgment in favour of Vodafone in a tax dispute.

Rohtagi had said, “The judgment of the high court is absolutely correct and we should accept the judgment and every matter need not be challenged to the Supreme Court. I have also concurred with the views of the chairperson of the Central Board of Direct Taxes.”

The Income Tax Department had asked for the attorney general’s opinion on whether it should appeal against verdict in the Supreme Court. The final decision in this regard will be taken by the government. Such a move is likely to improve foreign investors’ sentiment.

Vodafone has been facing a number of tax disputes in India since entering the country seven years ago. In another case, Vodafone is fighting a legal battle over a tax demand of about $2 billion regarding its acquisition of Hutchison in 2007.