The petition was mentioned on Tuesday by Income Tax counsel Beni Chatterjee and Vodafone lawyer Fereshte Sethna before a bench headed by Chief Justice Mohit Shah.
The department had slapped a demand of Rs 3,700 crore on Vodafone for Financial Year 2008 which was a fall out of an earlier transfer-pricing order seeking to add Rs 8,500 crore (Rs 85 billion) to the taxable income of the company from the deal that involved the it selling its BPO unit to an offshore entity.
The company challenged the demand before the Appellate Tribunal.
Transfer pricing refers to the actual price at which a transaction takes place between two related parties, usually belonging to the same group.
On December 27, 2013, the Appellate Tribunal had stayed the I-T tax demand for six months or till the final disposal of the plea, whichever is earlier.
The tribunal also directed Vodafone India Services to make an initial deposit of Rs 200 crore (Rs 2 billion).
The first instalment of Rs 100 crore (Rs 1 billion) was to be paid by January 15 and the second instalment of the equal amount is due by February 15.
Vodafone was also directed by the tribunal to provide corporate guarantees for the balance tax amount of Rs 3,500 crore (Rs 35 billion) by February 15.
However, the Income Tax department, in its petition, urged that the amount of Rs 200
Mobile telephony becomes a three-horse game
Bharti, Vodafone in the dock
Prosecution to examine 64 witnesses against Salman Khan
Sebi takes fresh look at Jet-Etihad deal
What to do when you get an Income Tax notice?