CHENNAI: In a reprieve to Cognizant Expertise Options India, the Madras excessive court docket has granted an interim keep towards the revenue tax division liquidating Rs 2,956-crore financial institution deposits of the corporate in lieu of Rs 4,300-crore tax arrears.
A division bench of Justice R Mahadevan and Justice Mohammed Shaffiq has, nonetheless, directed Cognizant to make cost of Rs 1,500 crore and furnish property safety for the tax legal responsibility inside 4 weeks.The court docket made it clear that the interim safety granted to the corporate will routinely stand vacated if it fails to adjust to the situation.
This aside, the court docket has directed the I-T division to launch the lien created on the financial institution deposits on cost of Rs 1,500 crore and furnishing of property safety.
The problem pertains to Rs 19,000 crore share buyback undertaken by Cognizant in 2017-18. Whereas the corporate contended that the transaction would solely appeal to capital beneficial properties tax for shareholders, the I-T division handled it as distribution of amassed revenue and taxed it as dividend.
A division bench of Justice R Mahadevan and Justice Mohammed Shaffiq has, nonetheless, directed Cognizant to make cost of Rs 1,500 crore and furnish property safety for the tax legal responsibility inside 4 weeks.The court docket made it clear that the interim safety granted to the corporate will routinely stand vacated if it fails to adjust to the situation.
This aside, the court docket has directed the I-T division to launch the lien created on the financial institution deposits on cost of Rs 1,500 crore and furnishing of property safety.
The problem pertains to Rs 19,000 crore share buyback undertaken by Cognizant in 2017-18. Whereas the corporate contended that the transaction would solely appeal to capital beneficial properties tax for shareholders, the I-T division handled it as distribution of amassed revenue and taxed it as dividend.
