Fear of retro returns? Tribunal upholds Rs 10,000-crore tax demand on Cairn

An international arbitration proceeding between Cairn and the government might continue

An income-tax (I-T) tribunal has upheld the much-discussed capital gains tax demand of Rs 10,247 crore on British oil major Cairn, under the controversial retrospective amendment to the law.

In an order on Thursday, the I-T Appellate Tribunal (ITAT) here has, however, given relief to the company on interest charges of Rs 18,800 for delayed payment of tax, on the ground that this was a retrospective levy. 

The tax will have to be paid by the company unless it decides to challenge the order in a high court, said experts. Alongside, an international arbitration proceeding between Cairn and the government