Shell tax case: Bombay HC seeks reply from I-T in 4 weeks
After reprimanding the tax department for moving slow on the issues, the Bombay HC allowed the department 4 weeks to reply. The matter is now scheduled to be heard on the September 30.
August 27, 2013 / 08:43 IST
The Bombay High Court on Monday heard the high profile tax battle involving Shell. The hearing saw Harish Salve launch the offensive questioning the income tax department seeking tax on capital receipts. He argued that there had been no revenue in the issuance of shares to the parent company.
Salve questioned how original issuance of shares had not been taxed, while the department was pursuing the alleged undervaluation. Meanwhile, the department reasoned that alternate remedy, in the form of an appeal before dispute resolution panel (DRP), had not been exhausted. So, the appeal before the Bombay HC could not be considered. The taxman also sought 8 weeks' time to appoint a special counsel to argue the matter. After reprimanding the tax department for moving slow on the issues, the Bombay HC sought a reply in four weeks. The matter is now scheduled to be heard on the September 30. In 2009, Shell India had issued 87 crore shares to its parent, at Rs 10 per share. The taxman has been contending that the valuation per share should have been Rs 183 per share, alleging undervaluation by over Rs 15,000 crore. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
