HC stays Rs411 crore tax demand on Nokia
- Colgate Palmolive to pay Rs4 per share as dividend
- Russia, India, China resolve to step up counter-terror cooperation
- Farm loan waiver gets thumbs down from former central bankers
- Vladimir Putin orders ‘significant part’ of Russian forces in Syria to withdraw
- Apple, India wrangle over import tax on mobile parts for iPhone
New Delhi: The Delhi High Court on Friday put on hold the income tax department’s order for recovery of over Rs411 crore outstanding tax from Nokia India Sales for the assessment year 2014-15.
A bench of justices S. Ravindra Bhat and Najmi Waziri issued the direction on Nokia’s plea challenging the assessing officer’s 9 March interim order for recovery of 33% of outstanding taxes which came to more than Rs411 crore.
The court also issued a notice to the Centre and the I-T department and sought their reply to Nokia’s plea claiming that income assessed by the assessing officer was ten times more than what was declared by the company.
The assessing officer had issued the order for recovery of 33% of the outstanding taxes calculated by him on Nokia’s plea to stay the entire assessment order till its appeal against it was pending before the appellate authority.
The mobile phone manufacturer, which was represented by senior advocate Percy Pardiwalla, told the high court bench that as per a February 2016 circular of the Central Board of Direct Taxes (CBDT), the assessing officer ought to have sought recovery of 15% or less of the outstanding taxes.
Nokia has contended that the circular was not considered by the assessing officer. The high court listed Nokia’s plea, filed through advocate Rony John, for further hearing on 25 July.