In what would have come as a shock to Vodafone, the Bombay High Court has dismissed the case filed by the telecom company questioning the order by India's tax department to file its taxes. The petition has questioned the jurisdiction of the department to ask for tax in cross-border mergers.

One of the judges said in the ruling that the petition has been dismissed and that the ' IT authority's order can't be held to lack jurisdiction'.

In reply to this, a Vodafone executive said that they will be appealing in the Supreme Court.

The tax details are during the deal between the British telecom company, Hutchison Whampoa Ltd and Essar. The deal had taken place in 2007 and the tax cases have been challenged ever since.

While no details have been announced about how much of money is going to be involved, a person close to the development said that it will be 120 billion rupees.

Indian tax authorities have said that Vodafone is liable to pay taxes since the asset of the deal are in India and as per the Indian laws they are liable in the country as well.