The income tax department has served a Rs 2,000-crore demand
notice on Nokia for alleged evasion, on which the company has obtained a
temporary stay. The department had on March 15th asked the firm to submit the
tax demand, which the Delhi high court stayed on March 22 in view of an appeal
filed by the firm.
Nokia has approached the court regarding the time period set
by the department to furnish the stated tax demand. Nokia confirmed receiving
the notice and said it was in “full compliance” with laws related to its
business operations.
“Nokia confirms it has received an order from Indian tax
officials. Nokia reiterates its position that it is in full compliance with
local laws as well as the bilaterally negotiated tax treaty between the
governments of India and Finland, and will defend itself vigorously.
“In this regard, Nokia filed a writ before the Delhi high
court last week and on Friday, March 22, the court has issued a notice to the
income tax department to file its counter affidavit and has granted interim
stay on the entire tax demand raised against Nokia till further orders,” a
Nokia spokesperson said in a statement.
The IT department will file its reply on or before April 10
in the Delhi high court stating it has issued the notices under sections that
“enable and authorise” it to issue such a time-bound notice, department sources
said.
