The Delhi high court on Monday told Vodafone it would be taking a risk if it did not file a reply to the income tax department’s show-cause notice, asking the company why its 2011- 12 financial records should not be subjected to a special audit. A bench
of judges S Muralidhar and Vibhu Bakhru made the observation after the department said the telecom major had not yet responded to the notice and was trying to delay the assessment process beyond the March 31 deadline. “If you are not filing a reply, you are
taking a risk,” the bench said. The submission on behalf of the I-T department was made by Additional Solicitor General Sanjay Jain. Counsel for the company sought adjournment in the matter as the arguing counsel was not present. The court adjourned the matter
to Wednesday but made it clear it would not grant the company any time on the next date to file its response to the notice of the I-T department. In its notice, the department had asked the company to show cause why its 2011- 12 financial records not be subjected
to special audit to arrive at the total income for assessment year 2012- 13. In its plea challenging the notice, Vodafone has also challenged the amendment to section 142(2A) of the I-T Act that says an assessing officer can seek a special audit in certain
circumstances. - www.business-standard.com