Analysis of the “Vodafone taxation case”
Name of the case:
Vodafone International Holding V. Union of India
Provisions involved:
Section 9(1)(i) of Income tax Act, 1955
Section 163 of Income tax Act, 1955
Section 195 of Income tax Act,1955
Facts of the case:
In February 2007, the Dutch company Vodafone International Holding (VIH) acquired a 100% stake in CGP Investments (Holding) Ltd ('CGP'), a Cayman Islands company, worth USD 11 billion from Hutchison Telecommunications International Limited. CGP manages 67% of the Indian company Hutchison Essar Limited ("HEL") through various legal organizations. With this acquisition, Vodafone took control of CGP and its subsidiaries, including Hutchison Essar Limited. HEL is a joint venture between the Hutchison meeting and the Essar meeting. As of November 1994, the ...