The Income Tax Department has slapped a fresh notice on British firm Cairn Energy, seeking up to Rs 30,700 crore in penalties for its alleged failure to pay Rs 10,247 crore capital gains tax on time.
Within weeks of tax tribunal ITAT upholding levy of retrospective tax, the Income Tax Department first sent a fresh demand note of Rs 10,247 crore and another show cause notice asking as to why penalty should not be levied for its failure in paying tax on time and filing of returns.
Senior tax department officials said Cairn Energy has sought 10 more days to reply to the show cause seeking levy of penalty.
“Capital gains was due on Cairn Energy on March 31, 2007, and due date for filing return was December 2007. But the company filed return by March 31, 2014” after the tax department on January 24, 2014 sent a draft assessment order, an official told PTI.
The assessment, the official said, got completed in January 2016 and a final order was issued raising a tax demand of Rs 10,247 crore and another Rs 18,800 crore in interest for 10 years.
The Income Tax Act provides for penalties of 100 per cent to 300 per cent of the tax due, the official said, adding that the notice sent does not mention of the quantum of penalties the tax department is seeking. Read More…
Credit By : The Economics Times
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