In an apparent fallout of the Supreme Court’s order in the Vodafone case, the Income Tax department has started a review of its probe in the 2G spectrum scam which relied heavily on the premise of capital gains generated in overseas deals by telecom firms.
The Department, which has till now detected Rs 1,500 crore of tax irregularities in its probe in this case, has found that telecom companies involved in the spectrum allocation had sold their controlling stakes to foreign firms through Mauritius and other foreign shores after the allotment of the spectrum.
It had also issued notices to various firms asking them to pay tax on the capital gains from such transactions which includes a recent Rs 80 crore tax notice to a real estate development firm under the transfer pricing clause.
“The department is looking at strengthening the probe from various angles which can stand scrutiny during prosecution,” reliable sources said while refraining from elaborating further about the steps being taken.
The I-T department, in its status report filed in the Supreme Court last year, had said that while telecom companies were physically present here, the transactions and the beneficiaries were outside India, and that the department was following the same principles as were used in the Vodafone taxation case.
According to sources in the department, the I-T is now reviewing its strategy while taking forward the case and it is eagerly waiting for a decision on the review petition it has filed in the apex court which is listed to be heard on February 27.
“In fact one of the main cases which will have the implication of the Vodafone tax case is the 2G spectrum,” the sources said.