Retro tax: Vedanta withdraws case against govt in Delhi HC, arbitration tribunal

 









Anil Agarwal-led mining group Vedanta Resources Limited has withdrawn cases against the government in the Delhi High Court and before an international arbitration tribunal to settle a ₹20,495 crore retrospective tax dispute.

Vedanta Ltd has withdrawn the income tax appeal pending before the Delhi bench of the Income Tax Appellate Tribunal," the company said in a statement today.

Vedanta said it has also filed the application seeking "withdrawal of the claim and termination of the arbitral proceedings" pending before the Permanent Court for Arbitration in the International Court of Justice.

“Vedanta Ltd and its related group entities also declare that no further proceedings or claims shall be initiated in any court or tribunal whether in India or outside India," the company said.

After seeking ₹10,247 crore in taxes from the UK's Cairn Energy Plc for alleged capital gains made on a 2016 internal reorganisation of its India business, the Income Tax Department had sought ₹20,495 crore from Cairn India in taxes. The department had said the company failed to deduct tax on capital gains made by its British parent.

Cairn India subsequently merged with Vedanta Ltd.

Vedanta today said it has used a recently enacted law to settle the tax dispute. “In view of the recent amendments to the Indian Income Tax Act, 1961 vide the Taxation Laws (Amendment) Act, 2021, which nullifies the retrospective tax imposed by Finance Act, 2012, Vedanta Ltd., and all its related group entities have taken steps to settle disputes," the company said.

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