HC seeks Govt’s reply on Cairn India plea against tax demand

The Delhi High Court on Monday sought government's response on a plea challenging Rs 20,495 crore tax demand slapped on Cairn India by the Income Tax Department for allegedly failing to pay taxes on gains made by its former parent firm in a share transfer transaction eight years ago.

A bench of Justices Badar Durrez Ahmed and Sanjeev Sachdeva also issued notice to the concerned ministry seeking its reply by August 4 on Cairn India Ltd's (CIL) plea against the IT department's demand.

CIL has challenged the demand on the ground that there has been "unreasonable and atrocious" delay on part of the authorities who exercised their power "unreasonably" while making the demand.

During a brief hearing, Cairn, represented by senior advocate Harish Salve, told the court they were consulting the government on Rs 20,495 crore tax demand to resolve the issue.gb