Hear out Cognizant before passing any orders: SC tells I-T

CHENNAI: The Supreme Court on Wednesday directed tax authorities to give IT services provider Cognizant India an opportunity to explain its position and pass a fresh order on a two-year-old tax dispute.

The case relates to repatriating money to the company’s parent entities in Mauritius and the US through a share repurchase programme in 2016. The top court also asked the I-T department to decide on the matter in two months, according to counsellors present in court. Cognizant did not answer an email on the implications of the court order.

Earlier, a three-judge bench of the SC said in a short order, “Leave granted… Pending applications, if any, shall also stand disposed of.”