The Bombay high court directed the income-tax department to stop the proceedings of its dispute resolution panel (DRP) against the Indian subsidiaries of Vodafone Group Plc and Royal Dutch Shell plc in an alleged transfer pricing case till the court passes a final order on 20 November.
The High Court is currently hearing petitions by the two companies in relation to transfer pricing computations by the income tax department.
The Shell case involves the alleged underpricing of a group share transfer in respect of the merger of its Indian subsidiaries. The Vodafone case is also fallout of retrospective amendments introduced in the national budget of 2012 that included capital financing under the transfer-pricing net.
