Retro Tax Row: Cairn Faces Over .₹ 10,000-crore Penalty

The Economic Times - - Companies -

British oil ex­plorer Cairn Energy faces up to .₹ 10,247-crore penalty over and above the .₹ 29,000 crore in tax and in­ter­est de­mand slapped on it by the I-T De­part­ment us­ing a ret­ro­spec­tive legislation. In a cir­cu­lar to share­hold­ers, the com­pany said it had on Fe­bru­ary 4 re­ceived a fi­nal as­sess­ment or­der from the In­dian In­come Tax De­part­ment in amount of .₹ 10,247 crore plus in­ter­est back dated to 2007 to­talling .₹ 18,800 crore. The I-T De­part­ment had on Jan­uary 22, 2014 is­sued a draft as­sess­ment or­der of .₹ 10,247 crore on al­leged cap­i­tal gains Cairn made in a 2006 re­or­gan­i­sa­tion of its In­dia busi­ness. The fi­nal as­sess­ment or­der was is­sued on Fe­bru­ary 4, 2016.

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