Commissioner of Income Tax: Delhi - Vi v. Vodafone Infrastructure Limited & Ors

ORDER

14.09.2015

¶1There is no appearanceon behalf of the appellantdespitethe matter having been passed over once. There was no appearanceon behalf of the appellant on the last two dates as well.

¶2Separate claims for mergers and demergers were moved before the learned company judge by two sets of companies i.e. Vodafone and Bharti respectively under Sections 391 to 394 of the Companies Act which were approved by the learned company judge by the order dated 29^^^ March, 2011. This order was being assailed by the department of Income Tax before the Supreme Court of India by way of SLP(C)No.29819/2012.

¶3LearnedSeniorCounsel for the respondenthas informedus thatthe schemewas approvedby the DivisionBenchofthe Gujarat High Courtby itsjudgmentdated 27^^ August,2012 on the petition moved by the Gujarat Company. This order of the Division Bench was assailed by the appellantby way of SpecialLeave Petition Page 3 of5

¶4It appears that the appellant was pressing its challenge on the issue of the manner in which proceedings for recovery of any tax dues would be effected from the transferor or transferee companies upon the merger/demerger. The learned company judge rejected these objections in the petitions filed by the parties resulting in the filing of these appeals.

¶5The appellant's challenge to similar orders with regard to Vodafone Essar Mobile Services Ltd. was rejected by the Supreme Court in the following terms : "Heard learned counsel for the parties. We are not inclined to entertain the special leave petitions. The special leave petitions are, accordingly, dismissed. We only state that the Income Tax Department is entitled to take out appropriate proceedingsfor recoveryof any tax statutorilydue from the transferor or transferee company or any other person who is liable for payment of such tax due."

¶6We are informed by Mr. Rajiv Nayar, learned Senior Counsel appearing for the Vodafone, Bharti and Indus Towers companiesthat this very issueis the primarygroundof challengein all these appeals and that the same would stand governedby the principle laid down by the SupremeCourt in the aforesaidorder of 15"^April,2015.

¶7It would appear that as a result of the outcome of the challenge before the Supreme Court, the appellant is also not interestedin prosecutionof the present appeals. Page 4 of5 These appeals and applicationsare therefore,dismissed. It needs no elaborationthat the partieshave to abide by the principle laiddown by the SupremeCourtin its orderdated 15* April,2015 so far as the statutory tax dues claimed by the Income Tax authoritiesagainstthe partiesare concerned. This principlewould bindthe partiesin all theseappeals. SEPTEMBER 14,2015 aj E^TMEHTA, j Page 5 of5

$-11 to 15 *IN THE HIGH COURT OF DELHI AT NEW DELHI + CO.APP. 63/2012 and CM Nos.12304-05/2012 CIT Appellant Through: None. versus VODAFONE ESSAR MOBILE SERVICE LTD Respondent with Ms. Niti Dixit, Mr. Raunaq B. Mathur and Ms. Samiksha Godiyal, Advs. + CO.APP. 67/2012 and CM No.13359/2012 CIT Appellant Through: None. versus BHARTIINFRATEL LTD Respondent Mr. Gopal Jain, Sr. Adv. with Mr. Vaibhav Choudhary,Mr. Chinmayee Chandra and Mr. Vidur Bhatia, Advs. + CO.APP. 55/2013 and CM No.12838/2013 COMMISSIONER OF INCOME TAX: DELHI- VI Appellant Through: None. Page 1 of5 3^^ versus VODAFONE INFRASTRUCTURE LIMITED & ORS. ... Respondents with Mr. Milanka Choudhary, Ms. Sarojanand Jha and Mr. Yash Srivastava, Advs. for R-4. CO.APP. 56/2013 and CM No.12839/2013 COMMISSIONER OF INCOME TAX: DELHI -1 Appellant Through: None. versus BHARTIINFRATEL VENTUES LIMITED & ORS. ... Respondents Through: Mr. GopalJain, Sr. Adv. with Mr. Vaibhav Choudhary, Mr. Chinmayee Chandra and Mr. Vidur Bhatia, Advs. with Mr. Milanka Choudhary,Ms. Sarojanand Jha and Mr. Yash Srivastava, Advs. for R-4. CO.APP. 3/2015 and CM Nos.2238-39/2015 COMMISSIONER OF INCOME TAX-VI Appellant Through: None. versus Page 2 of5 3^ % VODAFONEDIGILINK LIMITED Respondent with Mr. Anirudh Das and Mr. Manikrishnan, Advs. CORAM: HON'BLE MS. JUSTICE GITA MITTAL HON'BLE MR. JUSTICE I.S.MEHTA