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Idea served I-T notice; terms it "erroneous"

Last Updated: Thursday, April 25, 2013 - 21:36

Mumbai: Mobile operator Idea Cellular Thursday said it has been served a notice by the Income Tax Department, which the company believes is "erroneous" and it has approached appropriate forums.

"On the last day of the financial year we received a tax demand on idea cellular and its subsidiaries. We believe the demand is not in line with current tax practices and the demand is erroneous," Idea Cellular Managing Director Himanshu Kapania told reporters here.

He further added: "The company believes that no tax is applicable to us and we have appealed at appropriate forums for squashing of the demand."

Asked why idea did not file a writ petition, Kapania said: "We have our own strategy."

Helped by growth in voice usage and data consumption, Idea today posted 29 per cent jump in consolidated net profit at Rs 308.18 crore for the fourth quarter ended March 31 compared to Rs 238.98 crore in the same period last fiscal.

Given the strong performance, the company has announced a dividend for the first time in 16 years.

Total revenues during January-March 2013 quarter rose by 12.88 per cent at Rs 6,061.38 crore against Rs 5,369.69 crore in the corresponding period last fiscal.


First Published: Thursday, April 25, 2013 - 21:36
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