I-T department sends new Rs 577cr tax notice to Infosys

Moneycontrol Bureau

India's second largest software services exporter Infosys has said it will contest a new USD 106 million, around Rs 580 crore tax demand notice slapped by the Income Tax Department for financial year 2009. "The company has received the assessment order from the Income tax authorities for fiscal 2009 on May 2, 2013 along with a demand order for an amount of USD 106 million...As the company is contesting this position like earlier years, the appellate authority would be approached within the time limit prescribed under the relevant law," the Bangalore-based company said in a filing to the US SEC. Infosys is already facing tax demand for over USD 200 million for FY2005-2008. "mainly on account of disallowance of a portion of the deduction claimed by the company under Section 10A of the Income Tax Act". Infosys shares were up about 0.8 percent at Rs 2,352 on NSE in morning trade. Also read: Infosys job applications fall 40%, rate of attrition at 16% Meanwhile, an Infosys spokesperson told PTI: "We have received the assessment order for the assessment year 2009-10 demanding a net tax of Rs. 577 crore." "The assessment followed the order of the assessment year 2007-08 and 2008-09 that did not allow tax benefits on income from onsite software development revenue from SEZ, disregarding the latest clarification issued by the CBDT in a circular on January 17. With inputs from PTI