CAIRN CASE: SETBACK FOR INDIA

An international arbitration panel has rejected India’s demand for a stay on an arbitration proceeding by Cairn Energy plc against a `10,247 crore retrospective tax notice. The tax department had in 2014 charged Cairn Energy with making capital gains on transfer of India assets to a newly created firm, Cairn India, and listing it. Instead of long-term capital gains tax, it levied a short-term capital gains tax and slapped the draft tax demand.