I-T didn’t warn Vodafone of tax burden or dispute deal format

The income tax department never challenged the structure of the deal between Hutchison Telecommunications International Ltd (HTIL) and Vodafone till the closure of the transaction in May 2007. The series of correspondence between the I-T department and the then Hutch-Essar shows that all the while, the department kept insisting that in the event of the shareholding pattern of Hutch-Essar (which was providing GSM services in the country) changing, capital gains tax would have to be paid by the company.

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