Taxman begins probe into Cadbury takeover by Kraft

It could be the next tax battle along the lines of the Vodafone-income tax department tussle.

The taxman has begun a time-bound probe into the Kraft takeover of Cadbury. Sources have told CNBC-TV18 that the preliminary report is likely to be submitted on January 15 this year.

Kraft had acquired 1.2 million outlets and five manufacturing units of Cadbury India. The revenue department ordered a probe after a petition at the Delhi High Court claimed that the transaction was taxable and taxes had been evaded.

The tax department could take up to a year to take action.