2G: SC pulls up I-T for sleeping

ASG Vivek Tankha,appearing for the I-T department,tried to explain that the investigation concerned certain big companies,which may choose not to co-operate. But the court did not mince words after a reading of the report.

Prima facie they all are tax evaders,do not call them big, the court shot back,pointing out that the department had started working on the case only after March 2011. This was despite the fact that they had knowledge of the evasions since 2008.

Tankha further informed that the department was considering imposing capital gains tax on some companies despite the fact that assets in India have changed hands abroad in Mauritius.

The government said it would be watching the Vodafone tax liability case pending in the SC as it may prove helpful in deciding the question of jurisdiction.

Vodafone,the UK-based telecom firm,had bought a controlling stake in Hutchison Essar using the Double Taxation Avoidance Agreement route in Mauritius and had claimed exemption. A three-judge bench led by Chief Justice of India S H Kapadia had directed Vodafone to make a payment of Rs 2,500 crore first and later posted the case for detailed hearing on merits.