Madras HC directs Cognizant to approach Appellate Authority on tax dispute

A Cognizant spokesperson said that the company may not be able to comment on the development since it has not officially received a copy of the order

A Division Bench of Madras High Court has partially allowed an appeal by IT major Cognizant against a single judge order, while upholding its direction to the company to approach the tax appellate authority for a remedy.

The order was issued on an appeal filed by the company against a single judge order dismissing its petition against the Income Tax Department's demand of Rs 2,806 crore in connection to a Scheme of Arrangement the company made to buy back shares from its shareholders, in 2016. 

Considering the appeal by Cognizant, the Division Bench comprising of M M Sundresh and M Nirmal Kumar,