I-T to appeal against Rs 19k-cr relief to Cairn

To consider imposing a penalty in the range of 100-300%

The tax battle between British oil major Cairn and the government is set to get murkier, with the income tax (I-T) department considering appealing in a high court against a tax tribunal’s order giving Rs 18,800-crore interest relief to the company. 

The department is also mulling the imposition of a penalty on Cairn in the range of 100-300 per cent, as the Edinburgh-based company missed the opportunity to get it waived under the dispute resolution scheme that closed on January 31.

The I-T appellate tribunal (ITAT) upheld last week the much-discussed capital gains tax demand of Rs 10,247 crore on Cairn under