New Delhi, December 22: The government today opposed the demerger scheme of Vodafone Essar proposing transfer of tower business to another group company in the form of gift saying the move would result in evasion of tax payment.
Vodafone has proposed to transfer the passive infrastructure (tower business) of its seven firms, operating in various circles, to Vodafone Essar Infrastructure Ltd in the form of a gift and the application is being heard by the Delhi High Court.
During the proceedings in the court of Justice S K Mishra, Additional Solicitor General Parag Tripathi and Premlata Bansal, appearing for the Income Tax Department, opposed the move contending the operator was trying to evade the capital gain tax.
“They (Vodafone) are trying to evade taxable revenue and taxable profit. How can seven companies give gift their assets to one company? They cannot gift each other.
–Agencies