The Income Tax Department on Monday withdrew its long-pending Rs 8,500-crore transfer pricing case against Vodafone India Services. The commissioner of income tax filed the withdrawal plea before a Supreme Court bench led by Chief Justice BR Gavai. The court allowed the withdrawal, bringing an end to a dispute that had lingered for nearly a decade.

The case goes back to the sale of Vodafone India’s Ahmedabad-based call centre business, 3 Global Services, to Hutchison Whampoa Properties (India) during the financial year 2008.

Following the internal restructuring, the tax department alleged that Vodafone had transferred intangible rights and call options to a related entity, treating it as an international transaction under the transfer pricing laws. Based on this, it sought to add Rs

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