The Income Tax Department has served a demand notice of Rs 6,234 crore to state-run BSNL for allegedly under reporting income in assessment year 2011-12.
BSNL Chairman and Managing Director AN Rai said: "We have appealed against the notice before Income Tax Commissioner. It is an incorrect assessment."
The public sector telecom firm BSNL had reported widening of loss to about Rs 8,850.70 crore during 2011-12 mainly due to regulatory expenses and non-receipt of funds for its rural landlines operations.
BSNL posted a decline of about 6 per cent in total revenue for 2011-12 to Rs 27,933.5 crore during the year, compared to Rs 29,687.62 crore it posted a year ago.
Telecom Minister Ravi Shankar Prasad is learnt to have written to Finance Minister Arun Jaitley on the matter earlier this week for resolution of the issue.
