ITAT partially stays tax demand raised against Bharti Airtel

The Income Tax Appellate Tribunal (ITAT) has partially stayed the Rs 26.68 billion tax demand raised against Bharti Airtel.

ITAT has stayed the demand of Rs 20.08 billion and has directed Bharti to pay the balance Rs 6 billion by way of monthly installments of Rs 1 billion till the next hearing, scheduled in January, 2013.

The matter dates back to 2008 when Bharti Infratel was formed as per the demerger scheme, wherein Bharti Airtel transferred its towers to Bharti Infratel. According to the tax authorities, Bharti Airtel is liable to pay tax for the transaction. The said transfer was considered as taxable by the Income Tax Officer and consequently demand of Rs 26.68 billion was raised. The tax demand was also confirmed by Commissioner of Income Tax (Appeals).

Following the tax demand, Bharti Airtel had approached ITAT requesting it to stay the recovery proceedings.