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The Income Tax Department has slapped a demand notice of Rs 10,247 crore on British explorer Cairn Energy Plc.
Tax tribunal ITAT in its March 9 order held that Cairn Energy was liable to pay tax on the 2006 transfer of India assets to newly created Cairn India, prior to its listing. However, it held that interest cannot be charged on it as the demand has been raised using retrospective tax legislation.
A tax demand of Rs 10,247 had been raised by the Income Tax Department and another Rs 18,800 crore interets for 10 years.
Carin has said in a notice to shareholders that “Following the ruling of the ITAT, an amended tax demand, received on March 31, 2017, noted that late payment interest would now be charged from February 2016, i.e. from 30 days following the date of the original 2016 final assessment order.”
