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Cairn Energy Plc, the British oil explorer faces up to Rs 10,247 crore fine over and above the Rs 29,000 crore in tax and interest demand slapped on it by the IT Department using a retrospective legislation.
The company said in a circular to shareholders that on February 4, it had received “a final assessment order from the Indian Income Tax Department in amount of Rs 10,247 crore plus interest back dated to 2007 totalling Rs 18,800 crore.
“The aggregate amount of Rs 29,000 crore excludes any applicable penalties which may also be applied to the final assessment (potentially up to 100 per cent of the final assessment order, excluding interest).”
On January 22, 2014, the IT Department had issued a draft assessment order of Rs 10,247 crore on alleged capital gains made by Cairn in a 2006 reorganisation of its India business. On February 4, 2016, the final assessment order was issued.
