Vodafone tax case: HC allows penalty proceedings to go on

A Vacation Bench passed the order on Vodafone’s plea, seeking stay on the penalty proceedings, which was initiated against it in December 2015 in connection with an assessment order for the year 2011-12. It also issued notice to the Centre and the IT department on Vodafone’s plea. 

Vodafone told the court that the final order was expected to be passed on Thursday and pursuant to that the department would raise a demand of Rs 1,500 crore, which would have to be deposited within 30 days. The company raised apprehension that the tax department may not give it the stipulated 30 days and could initiate recovery proceedings within a week.