New Delhi, Dec. 5 -- Mining and metals conglomerate Vedanta Ltd, through its promoter entity Vedanta Holdings Mauritius II Ltd (VHML), has moved the Delhi high court challenging the income tax department's claim that the group gained undue tax advantage of about Rs.1,308 crore through the misuse of the India-Mauritius tax treaty.

The tax department's general anti-avoidance rules (GAAR) approving panel had, on 28 November, also allowed imposing a tax liability of Rs.138 crore on the group.

The writ petition was heard on Thursday (4 December) by a division bench led by Justice Prathiba M. Singh, which restrained the tax department from taking coercive action or issuing an assessment order until the next hearing on 18 December.

According ...