Cairn Energy to seek damages from government for tax notice

Strongly contesting a Rs 10,247 crore tax demand raised on its eight-year old internal business recognition, British oil explorer Cairn Energy has said it will seek damages from the government for the loss in value of its holdings suffered because of the notice. The I-T Department, in January 2014, barred Cairn Energy from selling its 9.8 per cent stake in Cairn India, after it sold majority stake in its Indian unit to mining group Vedanta for $8.67 billion.
´Cairn contests the basis of the draft assessment and the Notice of Dispute is supported by detailed legal advice on the strength of the legal protections available to it under international law. In addition, Cairn will seek restitution of losses resulting from the attachment of its CIL stake since 2014,´ the company said.