The Income Tax Department has seized a further Rs 440 crore of dividend income due to Cairn Energy Plc to recover a part of the Rs 10,247 crore tax demand it had raised on the British firm using a retrospective tax legislation. Also read Gujarat fixes common income slab for all RTE admissionsBut due to an Income Tax Department order, Vedanta transferred that money to a separate account. Cairn filed an appeal before Income Tax Appellate Tribunal, which on March 9 last year upheld the assessment order. The tax department had in January 2014 used a two-year-old law to raise a Rs 10,247 crore demand on Cairn Energy. A final assessment order in January 2016 raised tax demand of Rs 10,247 crore plus an interest of Rs 18,800 crore.

Source: dna April 15, 2018 05:36 UTC