Vodafone Idea gains on buzz of tax refunds of Rs 833 cr

Vodafone Idea rose 3.40% to Rs 8.82 after the media reported that the Supreme Court directed the Income-Tax department to refund Rs 833 crore to the telecom company.

According to the media reports, the Supreme Court (SC) on Wednesday dismissed a petition filed by the income tax department challenging a recent Bombay high court order, which had asked the department to refund Rs 833 crore to Vodafone Idea. The refund is for the 2014-15 assessment year.

The media reported that on 28 May 2020, the income tax assessing officer passed a rectified order for a net refund of Rs 833 crore, after deducting Rs 176.39 crore as pending dues. However, the tax department did not release the amount on the ground that massive dues for other assessment years were pending.

Vodafone Idea challenged this in the Bombay high court, which said refunds cannot be withheld against undetermined future demands.

The telco reported consolidated net loss of Rs 11,643.50 crore in Q4 March 2020, higher than net loss of Rs 4,881.90 crore in Q4 March 2019. Revenue from operations fell 0.17% to Rs 11,754.20 crore in Q4 FY20 over Rs 11,775 crore in Q4 FY19.

Vodafone Idea operates as a telecom service provider. The company offers 2G, 3G, and 4G mobile services, as well as mobile payments, advanced enterprise offerings, and entertainment.

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