NMDC slapped Rs1,631 crore demand notice by IT

The state-owned National Mineral Development Corporation (NMDC) has been served a Rs1,631 crore demand notice by the Income Tax Department for assessment years 2006-07, 2007-08, 2008-09 and 2009-10, for alleged  under-invoicing of some export accounts.

Quoting sources PTI  reported that the public sector mining giant had paid Rs1,134 crore to the tax authorities for and contested the claim in respective appellates.

Income Tax authorities reopened the assessment for financial years 2007-08, 2008-09 includes its incomes of Rs2,517.21 crore and Rs278.03 crore respectively, alleging ''under invoicing of exports" and raised tax demand notices for Rs1255.83 crore and Rs102.85 crore for those years.

Sources also said, last year tax authorities reopened the company's accounts of assessment years 2006-07 and 2009-10 and raised tax demand notices for Rs 177.90 crore and Rs94.36 crore for the respective years.

Contesting the allegations, NMDC stated that all transactions were transparent and had been also routed through bank accounts and appeals before appellate authorities.

 NMDC, said it exported 3.26MT, 3.78MT, 3.87MT and 3.43MT during 2006-07, 2007-08, 2008-09 and 2009-10 respectively, and the total value of exports during those four years had been recorded at Rs 4,382.52 crore.

According to sources, currently the issue was about assessment years 2007-07 and 2009-10 pending before the commissioner of income tax (appeals) and the matter related to 2007-07 and 2008-09 was pending before the income tax appellate tribunal, Hyderabad.