Cognizant Technology Solutions (India) Private Limited has moved the Madras High Court challenging an order passed by the Income Tax Appellate Tribunal (ITAT) on May 27 directing the company to pay ₹475.68 crore before June 15 as a pre-condition to stay the outstanding tax demand of ₹4,358.17 crore for the assessment year 2017-18.
Justices R. Mahadevan and Mohammed Shaffiq on Monday adjourned the hearing on the company’s tax case appeal to Thursday at the request of Additional Solicitor General R. Sankaranarayanan, who assured the appellant’s counsel Arvind P. Dattar that no coercive action would be taken until the next hearing of the case.
In the meantime, the judges also directed Income Tax Department’s senior standing counsel A.P. Srinivas to take notice and obtain instructions. In its affidavit, the company claimed that the order to pay ₹475.68 crore was unwarranted since already “excess security” running to a few thousand crore rupees was lying with the department.
