The Bombay High Court on Monday adjourned to next month the hearing of a petition filed by Shell India against an Income Tax demand, which sought to add Rs 15,000 crore to the company's taxable income after its parent invested in the shares of its local unit four years ago.
The lawyers for Shell India on Monday argued it should get relief based on the same principles as that of the Vodafone tax case. But the income tax department said the case was different from that of Vodafone in many ways and sought time from the court to hear it. The judge adjourned to November 18.
The I-T department had charged Shell India with undervaluing share transfer within the group by Rs 15,220 crore, and, thus, evading tax. The order relates to the issue of 87 million shares by Shell India to an arm abroad, Shell Gas BV, in March 2009.
Another relief for Vodafone
The Bombay High Court on Monday ruled in favour of Vodafone again in a similar transfer pricing dispute in which Rs 1,400 crore of tax was demanded from Vodafone for a different assessment year. The court on ruled in favour of British telecom major saying it didn't have to pay additional tax of Rs 3,200 crore, as demanded by the authorities.
The department had said Vodafone India under-priced shares in a rights issue to its parent. The tax demand was for the two financial years ended March 2011. The amount included tax and interest for the tax demand for assessment year 2009-10. bs reporter