A.

Title and Citation:

 Title: Vodafone International Holdings BV v. Union of India
 Citation: (2012) 6 SCC 613

B. Relevant Facts:
 Vodafone International Holding (‘Vodafone International’) and Hutchison
telecommunication International limited (‘HTIL’) are two non-resident companies.
These companies entered into transaction pursuant to which HTIL transferred
the share capital of its subsidiary company based in Cayman Island i.e. CGP to
Vodafone International.

 Vodafone International by virtue of this transaction acquired a controlling interest

of 67 percent in Hutchison Essar Limited (‘HEL’) which was an Indian Joint
venture company (between Hutchinson and Essar) through CGP.

 The Indian Revenue Authorities (‘IRA’) issued a show cause notice to Vodafone
International as to why the tax was not deducted on the sale consideration of this
transaction. The IRA thereby through this sought to tax capital gain arising from
sale of share capital of CGP on the ground that CGP had underlying Indian
Assets.

 Vodafone International filed a writ petition in the High Court challenging the
jurisdiction of IRA. This writ petition was dismissed by the High Court and
Vodafone International appealed to the Supreme Court wherein the matter was
sent back to IRA to decide whether the IRA had the jurisdiction over the matter.
The IRA decided that it had the jurisdiction over the matter which was also
upheld by the High Court. Subsequently, Vodafone International filed a Special
Leave Petition with the Supreme Court on the matter.