Oracle India moves HC against I-T order for special audit

Oracle India has approached Delhi High Court challenging the order of the government which had asked it to undertake a special audit of the tax returns filed by the IT firm.

In its petition, Oracle India, a subsidiary of global IT firm Oracle Inc, requested the court to stay the direction passed by the Income Tax Department which had on December 29, 2009, ordered it to do a special audit of the tax returns filed by the firm for financial year 2006-07.

The Income Tax department had directed SBG & Co, a Charted Accountant firm, to do a special audit of the IT firm.

A Division Bench comprising Justice B D Ahmed and Justice Siddharth Mridual has directed to list the petition for hearing on January 19.

"Quash the impugned order of Respondent no 2 (IT dept) directing the Oracle to have its account book of the accounts for the assessment year 2006-07 audited by the nominated auditors," said Oracle India in its petition.

Oracle had declared a total income of Rs 159.40 crores for financial year 2006-07.

However, the I-T department said there was some international transaction by Oracle which was also in the business of duplication and distribution of softwares developed by its US-basec parent company Oracle Inc.

The Transfer Pricing Officer (TPO) raied some queries regarding the royalty, interest and other facts.