SC dismisses curative plea by telcos seeking correction in AGR calculation
In a big setback for telecom companies, the Supreme Court has dismissed their curative pleas seeking correction of alleged errors in Adjusted Gross Revenue (AGR) calculation.
Vodafone India and the Income Tax Department are battling it out as Vodafone seeks refunds while the Income Tax Department is laying claim to previous demands.
The IT department under section 250, 143, 143 (3), and 263 have raised demands of Rs 1842 crore from the assessment year 2006-07 to 2013-14.
As per the tax assessment in the Mumbai circle, in 2010-11, The demand for assessment year was Rs 2127 crore adjusted against refund on October 11 by CPC although the demand was stayed by ITAT.
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The refund was approved but the refund was not issued due to an error while reading by CPC-ITR. A complaint was lodged for the same by the IT Department.
Henceforth, for 2018-19, the scrutiny is pending and therefore the refund has been withheld under Section 281 B of the IT Act. Since the scrutiny is pending no refund has been issued.
After the Supreme Court judgment on AGR, tax officers are in a fix that since the refund is pending how do they adjust with the AGR payments.
(With input from agencies)
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