Dy. DIT vs Vodafone South Ltd.

Dilip B. Bhosale, J.�All these appeals are directed against the order dt. 20-3-2014 passed by learned Single Judge disposing of W.P. Nos. 13210-214/2014 and W.P. Nos. 13564-568/2014. The writ petitions were directed against the order dt. 6-3-2014 passed by the Income Tax Appellate Tribunal, Bangalore Bench B (for short the Tribunal), whereby, the appellant-Vodafone South Limited was directed to deposit Rs. 100 crore on or before 21-3-2014, pending the hearing and final disposal of ITA Nos. 449-453/2013. The learned single Judge disposed of the writ petitions, dealing with all the contentions urged on behalf of the parties on merits and confirmed the order passed by the Tribunal. It is against this order, the instant appeals are filed by both the assessee as well as the Revenue.

We have heard these appeals and in the course of hearing certain suggestions from both the sides were made and ultimately, learned counsel appearing for the parties have agreed for disposing of these appeals by the following order:

ORDER

(i) The appellant-Vodafone South Limited shall deposit a sum of Rs. 75 crores with the assessing officer and shall also furnish a Bank Guarantee of any Nationalised Bank/Scheduled Bank for the difference of amount i.e., Rs. 257,57,53,136 ''Rs. 75,00,00,000 within a period of four weeks. The appellant shall keep the Bank Guarantee alive till disposal of the appeals (ITA Nos. 449-453/2013) by the Tribunal, and for a period of 120 days as contemplated by Section 260A of the Income-tax Act, 1961 (for short the Act) from the date of the decision of the appeals before the Tribunal.

(ii) As stated by Mr. Aravind, learned counsel for the Revenue, on instructions from the Director of Income Tax, International Taxation, who is present in the Court, the Revenue shall refund the amount of Rs. 75 crore with interest at the rate of interest on refund as contemplated by section 244A of the Act within a period of one week from the date of expiry of the appeal period under section 260A of the Act.

(iii) This shall not preclude either of the parties to carry the order passed by the Tribunal in appeal before this Court and obtain interim order. In other words, the order of refund and keeping the Bank Guarantee alive, shall, be subject to the order that will be passed in the appeal to be filed under section 260A of the Act.

(iv) The Tribunal shall decide the appeals (ITA Nos. 449-453/2013) on merits in accordance with law and uninfluenced by the observations made in the order dt. 20-3-2014 passed by the learned single Judge in the aforementioned writ petitions.

(v) The Tribunal shall decide the appeals, which we are informed, are kept for hearing on 21-4-2014, as expeditiously as possible and preferably within a period of four months from the date of deposit of the amount and furnishing of Bank Guarantee as aforementioned.

(vi) If the appeals before the Tribunal are decided against the appellant-Vodafone, the Revenue shall not encash the Bank Guarantee till expiry of the appeal period under section 260A of the Act.

(vii) All contentions of the parties are kept open.

With these observations, these appeals are disposed of.