IBM takes I-T to court

Global information technology giant IBM's Indian subsidiary has filed a suit in the high court here, challenging an income tax demand of Rs 5,357 crore for assessment year 2009.

The income tax department on October 28 slapped a notice on the company, alleging the latter had under-reported income to evade tax under the export promotion scheme of the Software Technology Parks of India.

"The draft assessment issued in October 2013 ignores fundamental accounting and tax principles and IBM is seeking relief from the high court," an IBM spokesperson told Business Standard.