On Monday, January 20, 2025, the Supreme Court validated the Bombay High Court’s November 2023 decision ordering the Revenue Department to refund ₹1,128 crore to Vodafone Idea (Vi). Along with interest, the Revenue Department is directed to pay a ₹1600 crore refund.
This case concerns Vodafone Idea’s claim for a refund of its payment after assessment in 2016-2017. The tax department rejected the company’s claimed refund. This led Vodafone Idea to move to the Bombay High Court.
Senior Advocate Sachit Jolly and Soumya Singh represented Vodafone Idea in the case.
The Revenue Department appealed for a 295-day special leave petition (SLP) challenging the Bombay High Court ruling. However, the Supreme Court dismissed the tax department’s appeal, stating that the delay was unexplained. A division bench of Justices JB Pardiwala and R Mahadevan dismissed the tax department’s SLP.
The Bombay High Court allowed Vodafone Idea’s writ petition, accepting the company’s returned income since the order under section 143(3) with section 144C(13) of the Income Tax Act was barred by limitation of April 30, 2021. Justices JB Pardiwala and R Mahadevan’s division bench criticised the assessing officer for failing to pass the final order within the 30-day limit.
According to the Bombay High Court, Vodafone’s case was elementary, and the assessing officer was apathetic and negligent in discharging his duties under the Income Tax Act. Such failure affects the nation’s economic stability, like how imbedded finance is impacting the modern economy.
