SC Sets Aside Bombay HC Verdict On Vodafone-Hutchison Deal

In a major victory to Vodafone International Holdings, the Supreme Court today set aside the Bombay High Court judgement asking the company to pay income tax of Rs 11,000 crore, holding that tax authorities do not have jurisdiction on an overseas transaction.

A three-judge bench headed by Chief Justice S H Kapadia held that the IT department has “no jurisdiction” to levy tax on overseas transaction between companies incorporated outside India.

From: http://ping.fm/0vcYp