Shares of Vodafone Idea Ltd surged up to 2.5% on November 9 after the Bombay High Court directed the Income Tax department to refund Rs 1,128 crore to the telecom operator.
The court’s decision came in response to a petition by Vodafone Idea Limited, which claimed that the I-T department failed to refund the amount paid for the assessment year 2016-2017, arguing it was in excess of the legitimate tax due on its income.
The assessment order against the telecom operator, passed in August this year, was deemed “unsustainable and time-barred” by the court. The court directed that a copy of its order be circulated to the Union Ministry of Finance.
A division bench of Justices K R Shriram and Neela Gokhale criticised the assessing officer for not passing the final order within the mandated 30-day time, causing a significant loss to the exchequer and the public.
The court recommended a detailed enquiry into the failure of the assessing officer to act following the provisions of the Income Tax Act. Strict action against those responsible for the laxity and lethargy was also urged.
Vodafone Idea shares climbed as much as 2.5% from the last closing price on the National Stock Exchange (NSE) to an intraday high of Rs 14. At 12:35 pm, the scrip was trading 1.83% higher at Rs 13.90.