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The Bombay High Court has directed the income tax department to refund Rs 788.39 crore


MUMBAI: The Bombay High Court has directed the income tax department to refund Rs 788.39 crore to Vodafone Idea LimitedNSE 1.59 % within three weeks, bringing relief to the telecom operator which has asked the government to provide relief to the debt-laden sector.

The tussle between the telco and the IT department started regarding the assessment order 2017-2018 financial year, in which the Kumar Mangalam Birla promoted the company suffered losses in excess of Rs 6,600 crore.



The IT department had held back the refund on grounds that the telco had declared an income of Rs 286.86 crore during the assessment year of 2016-2017, but incurred a big loss next year, and therefore its returns for 2017-2018 should be investigated. The refund order was issued by the court last week.

The investigating officer had highlighted other issues including revenue share license fees, non-deduction of tax at source on discount to prepaid distributors among others.

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