Sep 07, 2019
Cognizant appeals against order upholding Rs. 2,806-cr I-T demand
The Madras High Court today allowed a writ appeal, in part, filed by Cognizant Technology Solutions against a Single Bench order in June, in a case involving a demand by the Income Tax department to the tune of Rs. 2,806 crore relating to buyback of shares from its shareholders. Cognizant’s scheme of purchase was approved by the Madras High Court in April 2016. It bought back the shares and accordingly, it was treated as capital gains and a sum of Rs. 898.01 crore was withheld as TDS as per the return filed by it.