H C stays fresh tax demand on vodafone

The Delhi High Court on Friday instructed the income-tax (I-T) department not to give effect to any fresh assessment against Vodafone for assessment year 2011-12 till February 18, when the British telco’s plea against a dispute resolution panel's decision to disallow exemptions amounting to Rs 2,800 crore would be taken up.

The dispute resolution panel (DRP), an alternative dispute resolution mechanism formed under the Income Tax Act, had disallowed exemptions sought by Vodafone under various heads, including network site rentals, annual licence fee, unaccounted income, depreciation on 3G spectrum and transfer pricing adjustments on advertisements and marketing expenses.

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