The Delhi High Court on Wednesday agreed to hear on May 26 the dispute over the asset freeze on Nokia India’s Chennai manufacturing plant in the ongoing tax case between the company and the income tax department, which had put up a claim of R10,000 crore.
The Finnish telecom gear maker which sold its handset making business unit to Microsoft in April last year, had to leave out the Chennai plant which the tax authorities had attached because of the multi-crore tax case.
A division bench headed by justice BD Ahmed agreed to advance the date from September 7 to May 26 after Nokia India’s counsel Kapil Sibal told the court about that there was an urgency in the matter as the company has found a buyer for its Chennai manufacturing plant that remains frozen.
However, the tax department told the court that that there were more than 40,000 items, for which valuation was not known. Nokia countered the claim by saying that the EY report was awaited.
Nokia India had earlier given the details of the buyer in a sealed envelope and appealed for the asset freeze to be lifted for the sale to go through.
The HC had given tax authorities three options to resolve the asset freeze issue which includes independent valuation of the plant, its auction or accepting a value being offered by a potential buyer.