Govt not to appeal against Bombay HC order in Vodafone case

To avoid "fruitless litigation" and allay investors' concerns on tax issues, government today decided against appealing a court order that absolved Vodafone of Rs 3,200 crore tax demand in a transfer pricing case.
As Cabinet decided against challenging the Bombay High Court order in this matter, Telecom Minister Ravi Shankar Prasad said the government wants to convey a clear and positive message to investors globally that it would be "fair, transparent and within the four corners of law".
"The government will not appeal in Supreme Court the October 10 order of the Bombay High Court in the Vodafone case," Prasad told reporters after a meeting of the Union Cabinet.

Attributing the "fruitless litigation" to legacy of the past, the Minister said: "The government wants to convey a clear message to investors world over that this is a government where decision would be fair, transparent and within the four corners of law. We have tried to give a positive message to investors".
The decision of not filing an appeal in the Vodafone case was taken at the highest level following advice by Attorney General Mukul Rohatgi.
Rohatgi had advised the income department to accept the judgement of the Bombay High Court in the Vodafone case.

The High Court in its October 10, 2014 order had given a big relief to the UK-based mobile service provider by ruling that it is not liable to pay an income tax demand of Rs 3,200 crore in a case relating to transfer pricing.

On impact of Cabinet decision on similar other cases, the Minister said a view would be taken after studying them.
Ruling party BJP and its leaders have earlier said, including in their election manifesto, that its government would do away with 'tax terrorism' that the earlier government had indulged in.