The "Bombay High Court has upheld our jurisdiction to look into the case. Total tax liability is estimated to be around USD 2 billion", Central Board of Direct Taxes (CBDT) Chairman N B Singh said in New Delhi.
The CBDT will also file a caveat in the Supreme Court, he said on being asked about the Vodafone statement that it would approach the Apex court against the Bombay High Court's decision.
"The decision of the court in this case has strengthened the hands of the Income Tax department in its attempt to bring to tax in India transactions involving transfer of assets situated in India between entities located outside the country", Singh said.
Other such deals which may come under scanner are AT&T-Tata and Vedanta-Sesa Goa among others.
The High Court had yesterday dismissed Vodafone's petititon challenging the Income Tax Department's show-cause notice for the payment of capital gains tax.
The Court, however, gave Vodafone eight weeks to file an appeal in this regard.
According to company sources, Vodafone has decided to file an appeal against the Mumbai High Court order, in the Supreme Court, soon.
Vodafone Holdings International, a Netherland-based company, had picked up the stake of Hutchison in Hutchison-Essar to form the new entity Vodafone-Essar in a USD 11.2 billion deal in 2006.