Cognizant Technology appeals to larger bench of Madras HC on tax order

Cognizant Technology Solutions has appealed to a larger bench of the Madras High Court against the order of a single-judge bench against the company on the income tax department’s claim on non-payment of Dividend Distribution Tax (DDT).

The department had issued an order in late March that the dues in question, including interest and others, were around Rs 4,500 crore. In an order issued in the last week of June, judge K Kalyanasundaram dismissed a petition from Cognizant against the order — the latter has told the company to remit tax at 15 per cent of the total payment of Rs 19,415.6 crore, with interest. The judge directed the company, if it wished, to approached the appellate authority against the department’s assessment.