CHENNAI: The Cognizant Technology Solutions India Private Limited has moved the Madras High Court challenging the Income Tax department levying and demanding a tax of `2,800 crore in connection with the purchase of its own shares from Cognizant Mauritius and the US-based parent Cognizant Technology Solutions (CTS).
Contending that CTS has transferred its profits to its non-resident share holder in the guise of share buyback, the IT department submitted that the company is liable to pay additional taxes on the excess amount above the fair price per share fixed by the assessing officer.
Recording the submissions, Justice T S Sivagnanam posted the matter for further hearing on June 14.