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Press watch: Vodafone's 'major victory'

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‘NEW DELHI: In a major victory to Vodafone International Holdings, the Supreme Court on Friday 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.’

The Times of India, 20 January 2012

‘India’s supreme court on Friday found in favour of Vodafone in a landmark case that had threatened to land the telecoms business with a $2.9bn tax bill and further dent India’s faltering investment climate.

‘The decision is a defeat for India’s income tax department, which spent five years pursuing the UK-listed group for capital gains tax it claimed was due following Vodafone’s $10.9bn acquisition of Hutchison Essar in 2007. However the ruling is a vindication for one of India’s largest foreign investors ...’

James Crabtree, Financial Times, 20 January 2012