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Your Rs 2,250 Cr Offer Is Unacceptable: Income Tax Department To Nokia

The Income Tax (IT) Department told the Delhi High Court that Nokia's offer to pay a minimum deposit of Rs 2,250 crore out of the company's total tax liability of nearly Rs 6,500 crore, is not acceptable, reports Economic Times. The company had earlier approached Delhi High Court seeking a lift on the stay order regarding the ownership transfer of its immovable assets in the country by December 12, 2013. Nokia India's lawyer said that it was not in a position to offer more and added that it is exiting the mobile manufacturing business, globally, irrespective of whether its plant in India is sold. Nokia said lifting of this asset freeze will allow the company to successfully transfer all its Indian factory assets to Microsoft by Q1 2014 (when the Microsoft-Nokia agreement is expected to close), failing which the Indian factory assets will not be transferred to Microsoft and it will create an uncertainty at its Chennai facility. Citing sources close to the company, Reuters had reported that Nokia will probably be operating the plant as a contract manufacturer for Microsoft. A bench comprising justices Sanjiv Khanna and Sanjeev Sachdeva pointed out that Nokia had earlier said it will continue manufacturing mobiles here and has now changed its stand. The bench asked Nokia to give details of its assets and liabilities as well as how much tax it has paid here, during the next hearing on December 9. The bench also questioned Nokia India's intention behind sending Rs 3,500 crore to its parent company…

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