Supreme Court dismisses Nokia plea for permission to sell its Indian assets

Mar 15 2014, 12:58 IST
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Supreme Court had earlier asked Nokia to come up with a concrete proposal to settle its tax row with the IT dept. Reuters Supreme Court had earlier asked Nokia to come up with a concrete proposal to settle its tax row with the IT dept. Reuters
SummarySupreme Court had asked Nokia to come up with concrete proposal to settle its tax row with IT dept.

this stage what will be the valuation after 10 months.

"Telephone is a very dynamic market. Things are changing very fast. What value they will pay 10 months from now we do not know," he said and added it was not yet known what demands Tamil Nadu government may raise for transfer of land or on other accounts.

Nokia said it was willing to deposit Rs 2,250 crore in escrow account or a higher amount that is received for Indian assets but a bank guarantee or undertaking for future demands is not possible.

The tax department, however, said the company did not have any new offer and termed the offer of depositing Rs 2,250 crore as "totally unreasonable".

Dismissing Nokia's plea, the bench said it was open for the tax department and Nokia to see if the dispute could be resolved and either of the two could still move the high court if need arises.

Nokia India has moved the Supreme Court challenging the decision of the Delhi High Court which asked the company to give an undertaking to fulfil the conditions relating to payment of tax dues.

The Indian arm of the Finnish handset maker has approached the apex court against the February 5 order of the High Court by which it was asked to abide by the order of December 12 last year.

While defreezing the assets of the Finnish firm in India, including in Chennai, the High Court had imposed certain conditions on it.

"Nokia Finland will be bound by the statement that they shall be jointly liable and shall pay tax demand determined and payable under Section 201/201(1A), interest and penalty thereon.

"Nokia Finland shall be liable to pay taxes, including penalty and interest due, and payable by them as determined under the Income Tax Act," the High Court had said.

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