Income Tax Appellate Tribunal rules against Vodafone Services over tax row

This stake in Vodafone India was held by Omega Telecom Holdings, in which a majority stake of over 60 per cent was held by SMMS Investments

A tax tribunal has settled the issue of deemed international transactions when the company concerned terminates its call option. 

The case relates to Vodafone India Services not exercising its call option to buy just over three per cent stake in group company Vodafone India.

Nitin Narang, executive director at Nangia & Co, said Vodafone India Services, a back office company for the group, had the option to buy 3.18 per cent equity in Vodafone India for Rs 27.8 million, so long as the fair market value of these shares was less than Rs 15 billion. If the latter value rose higher, it