New Delhi: Telecom giant Vodafone on Tuesday moved Supreme Court challenging the Income Tax authority notice imposing penalties on its majority stake purchase in Hutchison Essar Ltd., in 2007

The petition follows an Income Tax notice to the company few weeks back saying the penal action would be initiated against Vodafone in the tax case.

"We expect the Supreme Court to hear the petition Thursday," Simon Gordon, a spokesman for Vodafone, said.

The company also said, "It is difficult to understand the rationale behind the tax authorities seeking to impose penalties on a matter which the tax authorities have, themselves, described as a test case".

The Income Tax department had raised a demand of about USD two billion on Vodafone as it failed to deduct (withhold) tax at the time of purchase of majority stake of Hutchison in Hutchison—Essar in 2007 for over USD 11 billion.

The tax case has been pending in the Supreme Court and will come up for hearing on July 19.

(Agencies)