Madras HC dismisses Cognizant's plea over Rs 2,800 crore tax demand

The company was accused of evading DDT on transactions made while buying shares from its Mauritius and US arms

The Madras High Court (HC) has dismissed Cognizant Technology Solutions India’s (CTSIPL’s) petition challenging the recovery proceedings initiated by the income tax department for non-payment of Rs 2,800 crore in dividend distribution tax (DDT). The court has dismissed another plea by Cognizant (Mauritius) and Cognizant Technology Solutions Corporation (US), against the department.

Justice K Kalyanasundaram directed the firm to approach the respective authorities for remedy.

“Since this writ petition is dismissed, directing the petitioner to avail the appeal remedy; the Appellate Authority shall take into account the amount deposited in pursuance of the order referred supra, while entertaining the appeal,” he said