I-T DEPT SLAPS NOTICE ON VODAFONE

In a setback to telecom major Vodafone Essar, the Income Tax department has issued a show cause
notice to Vodafone International Holdings, alleging tax evasion in its $ 11.2 billion deal with Hutchison Telecommunications International Ltd. in 2007.In the 531-page notice sent under Section 201(1) and 201(1A) of the IT Act, 1961, it asked Vodafone to explain why it should not be held that “the tax department has competent jurisdiction to proceed against it for the default of non-deduction of tax at source” in the transaction.