Income Tax office slaps Rs 577-cr tax demand notice on Infosys

Income Tax department has slapped a fresh Rs 577-crore tax demand notice on Infosys for 2009-10 assessment year, adding to the tax woes of India's second largest IT firm.
The Bangalore-based software services exporter said that it is in process of seeking legal recourse against the fresh tax demand notice.
The IT major is already contesting additional Income Tax demands of about Rs 1,175 crore (USD 214 million) for four fiscals years beginning 2005.
Infosys, which is also a US-listed company, in a filing to the US Securities and Exchange Commission (SEC) last week had said: "The company has received the assessment order from the Income tax authorities for fiscal 2009 on May 2, 2013 along with a demand order for an amount of USD 106 million."

Meanwhile, an Infosys spokesperson told PTI: "We have received the assessment order for the assessment year 2009-10 demanding a net tax of Rs 577 crore."
"The assessment followed the order of the assessment year 2007-08 and 2008-09 that did not allow tax benefits on income from onsite software development revenue from SEZ, disregarding the latest clarification issued by the CBDT in a circular on January 17.

"Infosys is in the process of filing an appeal before the Commissioner of Income Tax," the spokesperson added.
In the SEC filing, Infosys added, "As the company is contesting this position like earlier years, the appellate authority would be approached within the time limit prescribed under the relevant law."

Infosys is already facing tax demands worth USD 214 million for fiscal 2005 to fiscal 2008 "mainly on account of disallowance of a portion of the deduction claimed by the company under Section 10A of the Income Tax Act".