Cairn Energy says contacted by India's income tax body

LONDON (Reuters) - British explorer Cairn Energy said it had been contacted by India's income tax department to discuss income tax assessments for the year ended March 31, 2007.

It said on Friday it was co-operating to provide the necessary documentation and information and would update the market in due course.

While talks are ongoing, Cairn Energy said it had been instructed by the income tax department to hold its shares in Cairn India .

(Reporting by Brenda Goh; Editing by James Davey)