India's Income Tax Department will issue a 'demand notice' to Vodafone, indicating the government's intentions to continue pursuing the mobile operator regarding the ongoing tax case, reports The Economic Times. Quoting two senior officials, the report states that the notice will be re-validated and sent to Vodafone, following the passing of Finance Bill in Indian parliament which is expected to happen in early May. The officials added that a clause in the Finance Bill, dubbed as the validation clause, will be used to revive tax claims which were previously rejected by the Supreme Court earlier this year. In January 2012, The Supreme Court of India has ruled in favour of Vodafone in its Rs 11,000 crore tax dispute case with the Government, rejecting Government's demands for a payment of Rs 112.2 billion/ Rs 11,2200 crore (£1.6 billion) tax and interest for a transaction between foreign entities Hutchison Telecommunications International Limited (HTIL) & Vodafone International Holdings (VIH) in Caymen Islands. The Indian government believed that the underlying assets in the company were Indian. The Court had then stated that the Indian Tax Department had no jurisdiction to tax the transaction since it happened offshore and it has no other option except for filing a curative petition. A fortnight ago, The Supreme Court of India had rejected the government’s review petition, which it had filed after the Supreme Court judgement. It was also revealed that the government had refunded Vodafone's deposit of Rs 2500 crore plus 4% interest to Vodafone, which was later confirmed by a company spokesperson. In a…
