I-T department may challenge order against TCS tax claim

The income tax (IT) department is seeking to challenge a recent tribunal order that ruled in the favour of Tata Consultancy Services (TCS), disallowing a tax demand of more than Rs 600 crore, sources aware of the development told ET.

The department had earlier probed TCS on Transfer Pricing (TP) adjustments to check if the transactions with its associated enterprises were at arm’s length and whether TCS was liable for taxes on brand fees. The assessing officer (AO) for the assessment year FY14-15 had arrived at the assessed income of ‘18,752 crore.