Tata Communications wins partial tax relief for AY 2011-12
As filed · Tata Communications Limited has informed the Exchange about the update on material litigation
RegulatoryImprovingMinormateriality 48 out of 100
What happened
FactThe Income Tax Appellate Tribunal, Mumbai, disposed of cross-appeals by Tata Communications and the Income-tax Department for Assessment Year 2011-12. The tribunal granted the company relief on its Section 80-IA deduction claim for its National Long Distance undertaking, certain transfer-pricing matters and other tax matters; some issues require verification or recomputation by the Assessing Officer.
Why it matters
CapitSignal interpretationLitigation creates a contingent liability that is not in reported profit until it crystallises.
Watch next
Fact- Amount claimed against the company
- Whether a provision has been made
- Next hearing or order date
Evidence
How CapitSignal classified this
- Reasoning:
- The order may reduce the company’s tax exposure for the assessment year, but the financial effect remains uncertain pending consequential verification or recomputation and the company’s evaluation of the order.
- Matched on:
- the filing's own subject line
- Confidence in the event type:
- 90%