The Central Board of Direct Taxes (CBDT) is not planning to immediately file a review petition in the Supreme Court on the Vodafone matter.
The Government went into a huddle after the apex court set aside the Bombay High Court ruling on a Rs 11,200-crore tax demand on Vodafone, and had also asked the Income-Tax Department to return Rs 2,500 crore deposited by Vodafone International Holdings within two months along with 4 per cent interest.
The Finance Minister, Mr Pranab Mukherjee, met with the Law Minister, Mr Salman Khurshid, and senior officials. It is believed that the meeting discussed the implications of such a ruling, not only from the revenue point of view but also in reference to various other cross border deals.
After the meeting, Mr Khurshid said, “Right now, we only know that it is a unanimous judgment that has gone against the revenue authorities. We have to examine (the order).”
“The Government obviously needs revenue for its important programmes and the other thing is the certainty in law. We have to examine both areas,” he added.
“Officials in the international taxation division will see the facts behind the judgment,” a CBDT spokesperson said. Then the Department will take the Government's views before finalising the next course of action, she added. The Board is the policy making body for the Income-Tax Department.
Ruling out an immediate appeal against the order, Mr Khurshid said, “It is difficult to say what are the reasons and grounds now for reversing it. We need time to understand and reflect what exactly is the reason that they have given,” the Law Minister added.