Vodafone Idea has claimed that tax department did not process their returns from 2014-15 to 2017-18.
The Supreme Court on Wednesday granted marginal relief to Vodafone Idea as it directed the Income Tax department to refund Rs 733 crore out of the total claim of Rs 4,700 crore demanded by the company.
While dismissing Vodafone Idea's appeal for refunding its full claim, the Supreme Court has ordered the Income Tax department to refund the amount within four weeks.
"Insofar as AY 2014-15 is concerned, final assessment order passed under Section 143(3) of the (Income Tax) Act indicates that the appellant (telecom firm) is entitled to refund of Rs 733 Crores; while for AY 2015-16 there is a demand of Rs.582 Crores," a bench comprising Justices U U Lalit and Vineet Saran said in the judgement.
The bench also directed the Tax department to conclude as early as possible the proceedings relating to the demand of refund of the telecom firm and the scrutiny of income by the I-T department with respect to assessment years 2016-17 and 2017-18.
"Except for the directions as indicated..., we see no merit in any of the contentions advanced by the appellant (Vodafone). This appeal is, therefore, dismissed without any order as to costs," the judgement said.
Vodafone Idea has claimed that the Income Tax department did not process their tax returns from 2014-15 to 2017-18. Vodafone Idea had argued that the tax department sought 12 adjournments since case came to the Supreme Court in January 2019.
Many refunds became infructuous as assessment for those years was already over and tax department kept delaying refunds, Vodafone Idea argued in the top court.
The telecom company had earlier moved the Delhi High Court alleging that there was complete inaction on part of I-T department in processing its ITRs and in issuing appropriate refund to it.
The firm had sought a direction to the government department to process and grant refunds for the AYs 2014-15 to 2017-18, along with interest under Section 244A of the Act.
The Delhi High Court on December 14, 2018 dismissed the petition and against that decision an appeal was filed in the apex court.
