Vedanta moves HC in ₹1,308-cr tax case

Mining and metals conglomerate Vedanta Ltd, through its promoter entity Vedanta Holdings Mauritius II Ltd (VHML), has moved the Delhi high court challenging the income tax department's claim that the group gained undue tax advantage of about ₹1,308 crore through the misuse of the India-Mauritius tax treaty.

- Krishna Yadav

The dispute centres on whether Vedanta created and used VHML for a lower treaty tax rate after its 2020 delisting attempt.

(REUTERS)

The tax department's general anti-avoidance rules (GAAR) approving panel had, on 28 November, also allowed imposing a tax liability of ₹138 crore on the group.

The writ petition was heard on 4 December by a division bench led by Justice Prathiba M. Singh, which restrained the tax department from taking coercive action or issuing an assessment order until the next hearing on 18 December.

According to court filings reviewed by Mint, Vedanta challenged the order of the GAAR panel that classified its Mauritius-based holding structure as an “impermissible avoidance arrangement.”