New Delhi: Seeking to tax Reliance Communications in an Rs 4,800 income tax case, the Income Tax department filed a plea against the company only to be rejected by the Supreme Court on Monday. The Income Tax department filed the plea pertaining to the proceeds of the company’s Foreign Currency Convertible Bonds (FCCB).
In a statement issued by Reliance Communications, it said, “The Supreme Court order has quashed [the] contingent tax liability of RCOM for about Rs 4,800 crore. Earlier, the Income-Tax Appellate Tribunal and the Bombay High Court had also upheld RCOM’s appeal against the order of the Income-Tax department.”
The Income Tax department approached the Supreme Court with the plea that Reliance Communications RCCBs were mentioned in the books without providing the details of the actual subscribers, wrote The Financial Express. R-Com, however, said that it had issued FCCBs amounting to Rs 6,485 crore in adherence to the guideline of the Reserve Bank of India (RBI).
“The crucial conditions regarding identity, genuineness and creditworthiness of the subscribers to the FCCB as required u/s 68 of the Income Tax Act was not examined by the Assessing officer during the assessment proceedings,” the plea said.