Redington said normal appellate remedies are available on receipt of the order from the High Court and the company will take adequate steps to safeguard its interest in this regard.
In 2013 and 2014, an Income Tax Officer (AO) sought to tax the imputed profits on the transfer of the Company's investment in Redington Gulf FZE, an overseas wholly-owned subsidiary. The transfer had been made to Redington International Holdings Limited (a step-down wholly-owned subsidiary) in November 2008 without consideration, leading to a potential demand of Rs 138 crore, excluding interest.
Redington (India) had preferred an appeal with the Income Tax Appellate Tribunal (ITAT), which upheld its contention that the transfer of aforesaid investment isn't taxable and rejected the addition made by the AO.
The Income Tax Department then preferred an appeal before the Madras High Court on the order received by the company from ITAT on this issue along with other issues for 2008-09.
The case was heard by the High COurt in September and October 2020, and final submissions were made before the Court on October 6, 2020.
The decision was pronounced by the Court on December 10, 2020, allowing the appeals preferred by the income tax department, leading to a potential demand of Rs 142.06 Crore excluding interest, said the company.
"Normal appellate remedies are available on receipt of the order from the HC. The Company will take adequate steps to safeguard its interest in this regard," according to company's announcement.
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