Cairn Energy to seek $1 billion damage from India
The Indian government will \"state its position\" in the Cairn Energy tax dispute before the relevant legal authority, Finance Minister Arun Jaitley said in London on Tuesday after the British firm announced that it will seek over USD 1 billion in damages from India.
London United Kingdom: The Indian government will "state its position" in the Cairn Energy tax dispute before the relevant legal authority, Finance Minister Arun Jaitley said in London on Tuesday after the British firm announced that it will seek over USD 1 billion in damages from India.
Mr Jaitley made the remarks while responding to a question seeking his reaction to the British oil major's announcement of legal action over a Rs 10,247 crore tax demand.
"There is a tax assessment order. I have also said earlier that there have been a number of proceedings in which some international investors had raised serious issues about some tax assessment orders. They have resorted to their own legal remedies which they think are available to them," Mr Jaitley said.
"In some cases those orders have been passed and in some cases we have even accepted the judicial orders as final and put those issues to rest. As far as the government of India is concerned, we are also interested in the larger interest of investment environment to put to rest some of those issues which are pending," he said.
"So if a particular assessee resorts to a legal remedy, the income tax government will state its position before that authority," he added.
British oil firm Cairn Energy plc on Tuesday said it will seek from India over USD 1 billion in damages for loss it suffered in value of its holding from a Rs 10,247-crore tax demand raised on its eight-year-old internal business recognition.
The Income Tax Department using a retrospective legislation had in January 2014 issued a draft tax assessment order on Cairn Energy over its 2006 internal business reorganisation and barred it from selling its 9.8 per cent stake in Cairn India.