In May 2007, Vodafone bought a 67% stake in Hutchison Whampoa for $11 billion.
In 2012, the government places retrospective tax liability of Rs. 7990 crore on Vodafone.
Supreme Court, in 2012 rules that Vodafone Group’s interpretation of the Income Tax Act of 1961 was correct and it did not have to pay any taxes for the stake purchase of Hutchinson for $11 billion.
Indian government’s demand of Rs 7,990 crore in capital gains and withholding tax from Vodafone is in violation of the Income Tax Act.
