IN a major development today, the Supreme Court of India heard the multi-billion dollar capital gains tax case of Vodafone International BV for admission on the ground of jurisdiction of the Indian Income tax authorities. Refusing to grant stay on the Bombay HC decision firmly ruling in favour of the Revenue that Indian revenue authorities do have jurisdiction to tax transactions between two non-resident parties consummated overseas, the Chief Justice of India's Court asked the assessee's counsels not to insist on stay or pay part of the demand.

The counsels for the Revenue stronly pleaded that it has been more than three years, the assessee has been challenging the extra-territorial jurisdiction and has not paid even a penny as tax. The Bench finally directed Revenue to quantify the total tax liability within four weeks. The next date for hearing has been fixed on October 25.