Aditya Birla Group firm Idea Cellular, on Friday,said it had received a tax demand from the authorities and was evaluating the option of challenging the order, which it believes to be “unjustified” and “erroneous”.
“We have received an income tax order dated Sunday, the last day of the financial year,” an Idea spokesperson told The Hindu.
While the company did not disclose how much tax it was being asked to pay, the spokesperson said the demands were “unjustified and based on erroneous interpretation of current tax laws and past precedents.” “We have followed highest standard of tax compliance,” the spokesperson added.
According to unconfirmed reports, the orders pertain to transfer of assets and licences between Idea Cellular and Aditya Birla Telecom in 2009.
Its rival, Vodafone, is also embroiled in tax liability case for a 2007 deal with Hutchinson.