Based on CBI's findings, the department has argued that income chargeable to tax from 2004 to 2008 escaped assessment. Highlighting transactions such as Essar's share sale in Hutchison Essar allegedly to related parties and investments in BPL Communications - the department has sought to reopen assessments for the returns filed. Several other similar transactions have also been red flagged by the department.
I-T department sources revealed that total taxable income for the two companies, after re-opening, could soar to Rs 1200 crores. Essar has withdrawn its petition from the Bombay High Court, which effectively allows the I-T department to move ahead with re-assessing the returns filed.
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