IT dept confiscates dividends of Cairn India

NewDelhi, June 20: An action has taken place against a notice issued. The income tax department has started the process to recover Rs 10,247-crore tax levied on the Cairn Energy Limited. The company was supposed to pay the amount by June 15.The tax was levied on the company under the Retrospective Taxation Law 2012.

The IT department has confiscated the company's dividend and also refunds. Vedanta has earlier acquired Cairn India and has ordered banks to transfer Rs 666 crore to IT Dept. Earlier the company has lost its case against income tax appellate tribunal (ITAT).

The IT department is also looking forward to selling 10 % share of Cairn India in Vedanta worth Rs 9000 crore. The department has also adjusted Rs 1500 crore refund available to the company. Finally, the company feels it is unfair for Indian tax authorities to collect taxes which were levied controversially .