The total compensation sought is equal to the tax demand raised and the value of Cairn Energy's 9.8% shareholding in Cairn India. Cairn Energy still holds 9.8% in Cairn India which the I-T Department has barred it from selling. British explorer Cairn Energy has sought $5.6 billion (nearly Rs ​37,255.4 crore) in compensation from the Indian government for raising a retrospective tax demand of Rs 29,047 crore on 10-year-old internal reorganisation of its India unit. Cairn Energy said no capital gains tax was due under the law in force in 2006 when the restructuring was done. This year, a final assessment order was slapped on it that included a Rs 18,800 crore of interest on top of Rs 10,247 crore principal tax amount.

Source: dna July 12, 2016 07:17 UTC