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In a reprieve to IBM India, the Supreme Court is understood to have restrained the Income-Tax Department from doing any further recovery of tax from the company, according to sources in the know.
A television report has further added that the apex court has now sent the case back to the tribunal. On being asked, a spokesperson of IBM India said “the company does not comment on current proceedings.”
The case refers to the ongoing dispute between the I-T Department and IBM India with regards to the latter’s tax liability for the for assessment period 2008-09.
The Income Tax Department had earlier raised a tax demand of Rs 1,090 crore for that period after finding that the company had not maintained separate books of account for the income it earned from its units located in SEZ and STPI zones.
Following this, IBM India had approached Income Tax Appellate Tribunal which had stayed the demand to pay the full amount subject to the company paying just Rs 50 crore. However, the I-T department had challenged this in Karnataka High Court saying that the order will cause “financial hardship and irreparable injury to the exchequer".
In its modified order issued last month, the Karnataka HC According to the modified order of the HC, IBM will have to deposit 50% of the claim amount on or before March 31.
The company had subsequently challenged this in the Supreme Court. During the hearing of the case last week, the apex court had adjourned the matter for hearing on March 15.
IBM has already deposited Rs 250 crore as against the I-T Department's demand.
