The income-tax department on Wednesday moved the Supreme Court to get the transfer of Nokia India's Chennai plant's assets to software giant Microsoft stalled as it apprehends it would not be able to recover its tax dues of over R21,000 crore once the deal is “consummated.”
Earlier, Nokia had also moved the apex court seeking immediate and smooth transfer of assets of its Chennai plant as part of the impending $7.2-billion deal with Microsoft. The company had challenged the High Court's December 12 order that asked it to give an undertaking to settle any final tax liabilities that would be imposed by I-t in the tax dispute.
The matter will come up for hearing on Thursday.
Challenging the Delhi High Court's order of December 12 that allowed the deal to take off, subject to the company fulfilling almost 16 conditions, the department said the order didn't fully secure the present and future income-tax dues against Nokia India and its Finnish parent firm Nokia Corporation.
Raising the plea of “vicarious liability” on behalf of the Finnish company, it said the demand actually related to Nokia Finland as the substantive liability of tax on the income embedded in the remittances made by Nokia India lies with Nokia Finland.
According to the revenue authorities, the whole deal with Microsoft has been structured in a way to avoid the payment of tax dues and “therefore, if the transfer of assets is allowed to be consummated without due protection of the current and future income-tax dues/liabilities, it may not be possible for the department to recover its legitimate dues thereafter.”
I-T searches at Hatsun Agro
New Delhi, March 12: Dairy products maker Hatsun Agro Product said the I-T Department conducted a search at its factories and residences of key officials, and it is cooperating with the department. “The company is submitting the required details sought for and continue to co-operate with the (Income Tax) department," Hatsun Agro said in a filing to the BSE. PTI