 "Offer for Nokia's Chennai plant very little: Tax dept to HC")
The submission was made by the I-T department before a bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva while seeking an urgent hearing of a plea filed by Nokia which has sought permission to sell the assets as it had found a prospective buyer.
The department mentioned the matter before the bench for an early hearing as it could not be taken up yesterday.
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The court, however, refused to hear it today and told the department to file an application if it wants the matter to be heard before the next date of hearing on September 7.
It also asked the department on what basis it was claiming the amount offered for Nokia's Chennai plant was very little.
An arm's length transaction is the one in which the buyer and seller of a product act independently and have no relationship to each other to ensure that they act according to their self-interest and are not influenced by the other party.
Nokia on April 17 had submitted before the court and IT department the name of the prospective buyer and the offer made in a sealed cover.
The court had on that date asked the department to examine if the offer was acceptable and if not, then it should consider appointing an independent valuer to carry out valuation of the plant and related assets.
Another alternative the court had suggested was to put up the assets for auction, by making the amount offered as a reserve price, saying "ultimately we have to maximize the price".
The department today told the court that the offer amount is very little and if the unit and related assets were sold, it would be difficult to recover the tax amount which it has tentatively placed at Rs 10,000 crore.
According to the IT department, the amount is for only one assessment year and there are other assessment years.
It had earlier told the court that as per previous orders, Nokia or its parent company in Finland had to secure the department up to an amount of Rs 3,500 crore, but the same has not been done yet.