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Star Group vs Tax Department

Published on Fri, Feb 28,2014 | 18:26, Updated at Mon, Mar 03 at 10:53Source : Moneycontrol.com |   Watch Video :

By: Payaswini Upadhyay, CNBC-TV18

Star Group's non-Indian entities have got the Bombay High Court’s approval to go ahead and settle more than 50 cases before the Settlement Commission. If successful, this could amount to the biggest settlement by any corporate. CNBC-TV18’s Payaswini Upadhyay reports.

Several offshore Star Group entities had approached the Settlement Commission way back in 2007 to de-litigate more than 50 cases that were pending in various forums. The point of contention in some of these cases is what income is taxable, basis of taxability, multiple assessments of the same income in different entities.

The tax department had challenged the admission and commencement of proceedings before the Settlement Commission by way of a writ in the Bombay High Court. The Department had said that they disagree with the disclosures made by Star’s offshore entities.

Star Group’s lawyer Ajay Bahl, Partner, AZB told us “Tax Department had challenged the admission by the Settlement Commission expressing disagreement with the disclosure made by the Star offshore entities, which those entities strongly supported and stood by. Bombay HC rules in favor of Star Group.”

My colleague, Aastha Maheshwari, spoke to her sources in the tax department who say they may appeal the Bombay High Court’s order in the Supreme Court. They also told her that Star’s offshore group entities had already paid taxes at the time of admission as per their petition but the Department believes the percentage of profit should be higher resulting in higher tax. The tax amounts involved are likely to be over Rs 700 cr

 
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