Vodafone Idea Share Price: Vodafone Group has received another round of relief in India after the Income Tax Department withdrew its long-pending tax demand of around Rs 8,500 crore against Vodafone India Services. The dispute, which dated back to FY08, was linked to the sale of the company’s Ahmedabad-based call centre business.
According to sources, the tax authority decided to retract the order after the Commissioner of Income Tax resolved the case through a formal petition. This marks a second major win for Vodafone Group within weeks — following the Supreme Court’s extension of payment timelines in the AGR case — offering the telecom giant much-needed breathing space.
The issue originated when Vodafone India, in FY08, sold its call centre operations (then known as 3 Global Services Pvt. Ltd) to Hutchison Whampoa Properties. The Income Tax Department alleged that the deal involved an undisclosed international transaction and subsequently demanded Rs 8,500 crore in taxes.
In 2015, the Bombay High Court ruled in Vodafone’s favour, terming the transaction domestic in nature. However, the tax department appealed the verdict in the Supreme Court in 2016, where the case had been pending without any progress until now. The recent withdrawal effectively ends a decade-long legal battle.
Vi Refutes $6 Billion Investment Reports
In a parallel development, Vodafone Idea Limited (Vi) officially denied reports suggesting that the US-based private equity firm Tillman Global Holdings (TGH) was planning to invest USD 6 billion in the company. Several media outlets on November 4 had claimed that TGH was in advanced talks to acquire a controlling stake in Vi, which is grappling with high debt levels.
The rumours sparked a sharp market reaction, driving Vodafone Idea’s stock up by nearly 14 per cent and taking it past the Rs 10 mark — its highest intraday jump since April 2024.
According to the alleged reports, Tillman Global Holdings, a New York–based investment firm, was exploring a USD 4–6 billion deal that would grant it operational control of Vi. The Aditya Birla Group and Vodafone UK, existing promoters of the company, were said to be considering ceding management rights, while the Indian government, which holds around 49 per cent stake, was expected to remain a passive shareholder.
Vi, however, categorically dismissed these claims as “speculative and baseless,” clarifying that there were no such negotiations underway.
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