Opposing the contention of the Vodafone that Income-tax Department didnâ?Tt warn the Vodafone about the possible tax burden from the Vodafone-Hutch deal, the CBDT has issued a press release and clarified that:
a) A notice had been issued to the parties asking for the relevant details about the transactions;
b) Subsequently, a notice was issued on 23rd March, 2007, in which it was clearly mentioned that the capital gains arising from the said transaction were chargeable to tax in India;
c) It was further mentioned that in case parties to the transaction proposed to advance any other view, they were at liberty to approach the Assessing Officer;
d) It was also explained that the payer (Vodafone Group) as well as the payee (Hutchison Telecom Group) could make an application to the AO under sections 195(2) and 197, respectively, for determining the exact tax liability arising from the said transaction.
The CBDT emphasized that Vodafone could not say that it had received no communication from the tax department, about the chargeability of the transaction to tax in India.
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