The Income Tax department has to refund taxes to the tune of 833 crore to Vodafone Idea, the Supreme Court maintained today in an order that brought relief to the cash-strapped telecom major which is already struggling to pay its AGR dues. Vodafone Idea has paid around Rs 7,854 crore of its AGR dues, it still owes Rs 50,399 crore to the government.
The tax department had argued that the refund be adjusted against the dues but the Supreme Court upheld the Bombay High Court order and dismissed the government's appeal.
The top court said the IT Department does not have power to withhold refund in anticipation of future demands
On June 26, following an appeal by Vodafone Idea for a refund of more than Rs 1,000 crore, the Bombay High Court had asked the Centre to return Rs 833 crores. The payment has to be made within two weeks, the court had said.
