The Delhi High Court issued a notice today to the Income Tax (IT) Department over Cairn Energy’s tax plea. The IT department has assured the UK-based explorer that the tax demand shall not be enforced till June 30. Cairn Energy has been battling a ‘retrospective tax’ demand of Rs 29,000 crore on capital gains it received in a 2006 restructure of its Indian unit. Sources have learned talks are under way with the government regarding the proposal made by the Finance Minister in the Budget. Cairn Energy has initiated its long-winded arbitration proceedings in Singapore. The Delhi High Court will resume hearing on August 4.
