The Supreme Court on Wednesday asked the Income Tax department to refund within four weeks Rs 733 crore to Vodafone Idea Ltd for assessment year (AY) 2014-15.

Vodafone Idea, formerly known as Vodafone Mobile Services Ltd, had sought Rs 4,759.07 crore in tax refund from for AYs 2014-15, 2015-16, 2016-17 and 2017-18, but the court refused for other years.

 The court noted that the Income Tax department would be entitled to invoke requisite power under Section 245 of the Act to set off the amount of refund payable in respect of AY 2014-15 against tax remaining payable.

"Since the requisite action is not even initiated, we say nothing in that respect. In the premises, we direct that the amount of Rs.733 Crores shall be refunded to the appellant (telecom firm) within four weeks from today subject to any proceedings that the Revenue may deem appropriate to initiate in accordance with law," the top court said.

The bench also directed the Tax department to conclude as early as possible the proceedings relating to the demand of refund of the telecom firm and the scrutiny of income by the IT department with respect to assessment years 2016-17 and 2017-18.

"Except for the directions as indicated, we see no merit in any of the contentions advanced by the appellant (Vodafone). This appeal is, therefore, dismissed without any order as to costs," the judgement said.

The telecom company had earlier moved the Delhi High Court alleging that there was complete inaction on part of I-T department in processing its ITRs and in issuing appropriate refund to it.

The firm had sought a direction to the government department to process and grant refunds for the AYs 2014-15 to 2017-18, along with interest under Section 244A of the Act.