Bangalore:
The Income Tax Department has assured the Karnataka High Court that no coercive action will be taken against Flipkart India Private Limited on the basis of the notices issued by the Assistant Commissioner of Income-Tax for Rs 1,100 crore.
The company had filed two subpoenas against the notices issued on January 31, 2023 for assessment years 2016-17 and 2018-19.
Judge BM Shyam Prasad, in his interim order dated February 6, 2023, fixed the Ministry’s assurance against coercive measures until the next hearing on February 24.
“The contention on behalf of the defendant is that there can be no legal prohibition against issuing a notice, but that no coercive action may be taken during the appeal period and that no coercive action will be taken as such,” the court noted in its interlocutory judgment. .
“This assurance is in effect until the next hearing date, and the agency is directed to re-list this petition on February 24, 2023,” the HC said.
The department had rejected ESOP cross charges amounting to Rs 4,500 crore for 2016-17 and Rs 180 crore for 2018-19. Thus, it had maintained the addition of capitalization discount as an intangible marketing asset.
Senior Counsel Tarun Gulati appeared before Flipkart.
The ministry’s permanent counsel, KV Aravind, was summoned to accept the notice. The court has merged the two petitions filed by Flipkart “in light of the petitioner’s complaint that notices under Annexure-B in both petitions are issued within the time allowed to appeal the order dated 31.01.2023. “
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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