Income Tax Tribunal upholds Rs 10,000 cr capital gains tax on Cairn UK

A picture of Mangala oil field (pic courtesy: Cairn energy's website)

The Income Tax Appellate Tribunal (ITAT) has upheld the income tax department order of Rs 10,247 crore of capital gains tax on Cairn, UK. 

 

The demand was in respect of Cairn UK transferring shares of Cairn India Holdings to Cairn India as part of an internal group reorganization in 2006-07, resulting in capital gains, preceding an initial public offering (IPO) of shares by Cairn India. 

 

I-T Department had said that Cairn UK made a capital gain of Rs 24,503.50 crore