The Income Tax Department has slapped a Rs 3,900-crore notice on Idea Cellular and its subsidiary, Aditya Birla Telecom, over transfer of assets and licences between the two companies in 2009.
Idea Cellular did not want to comment on the amount or the details of the case, saying the companies had received tax demands over a restructuring exercise approved by courts.
Idea did not disclose how much tax it was being asked to pay but said it believed the demands were “unjustified and based on erroneous interpretation of current tax laws”. It said it was evaluating options, including challenging the tax demand. “The demands are inconsistent with established tax laws and past precedents,” it said.
The I-T department had labelled the licence, asset and liability transfers as “slump sale” and said it resulted in capital gains. A slump sale is sale of assets in a lump sum, without assigning a value to assets and liabilities.