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Today the Bombay High Court asked the income tax department to reply to the writ petitions filed by Vodafone and Royal Dutch Shell against the transfer pricing.
Both the companies have challenged the tax demand made by the income tax department and have said no income arouse out of the transaction.
The income tax department says that both the companies have not applied arm's length rule in transfer pricing and hence taxed both the companies.
Both the cases have been clubbed and Harish Salve is fighting the case for both the companies in the Bombay High Court.
The High Court will hear both the cases again on 30 September after the income tax department replies to the petition filed by both the companies.
