A claim of Rs. 10,000 crore on the telecommunication firm has been raised over the tax dispute between the income tax department and Nokia India which would be taken up by the Delhi high Court for an urgent hearing. The mobile manufacturing plant in the Chennai have been frozen due to the tax disputes and now is about to sell. At the bench of justice, Nokia India told the Delhi high court that they have found the buyer for its Chennai plant where there was urgency in the matter as buyers have been found.
On April 17, Nokia had handed in right before the court and IT section the particular potential client and the offer produced in an enclosed cover
The dept had stated in the courtroom that based on earlier sales, Nokia or its mother organization in Finland must secure the department as much as an amount of Rs. 3500 crore, however this wasn't completed.
The senior advocate and the director of Delhi Metro Rail Recruitment requested the Nokia India to provide the list of their assets before the next date of urgent hearing. Nokia India provided the list and on the other side the IT department provided the information of the assets that number over 40,000 and told that the valuation of their assets were not known yet. As soon as the Ernst and Young private limited report was received, Nokia India said that they would provide the valuation of the assets.
The assets of both the ongoing concern and non going concern that is company not bankrupt and company has gone bankrupt these valuations would be done by the Ernst and Young Private Limited, the court said. The name of the prospective buyer and sealed cover offer submitted by Nokia India to the Court and the IT department. If that offer was not acceptable by the IT department in the valuation of them, the court will consider the related assets and the valuation of the plant as an independent value.
Nokia India argued for their asset which is remaining unused and attached which its value was getting decreased. And the IT department suggested selling it for free and taking the sold amount as companies tax liabilities. This is mainly because the amount offered by the buyers for the Nokia’s Chennai firm was too little, according to their self interest where there were no influences among the two parties. The IT department said the court that the pay provided by the buyers are very little and even if Nokia India sold out their plant and the assets would not recover the tax amount that would be very difficult for them to recover it, which it has placed at 10,000 crore tentatively.
The court said that, it would face all the players who involved in this case for its asset and they could not confirm whether the buyer will buy the assets. Finally Delhi high court freezes the assets of the Nokia India and allowed them to sell it on certain conditions.
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