Moser Baer dips following SC notice

NEW DELHI, INDIA: The share value of Moser Baer, a manufacturer of computer-related products, was slightly impacted following the news that the Supreme Court of India has issued a notice to Moser Baer India Ltd why it should not be asked to pay income tax to the tune of Rs 2,978 crore.

The stock of Moser Baer came down from the weekend's closing of Rs 84.45 to Rs 83.05 today. At one point it had come down to around Rs 81 before recovering.

Figures erroneous: Moser Baer

However, Moser Baer said the figures are are completely erroneous and highly damaging for the company’s reputation. It is a sum of Rs 2,97,86,303 (Rupees two crore, ninety seven lakh, eighty six thousand three hundred and three only) that the Income Tax Department had demanded as tax, it said.

“This figure has been inflated a thousand times and reports have appeared all over the media,” it said in a statement.

“Moreover, the fact of the matter is not that Supreme Court has issued a notice to Moser Baer to pay tax. The Supreme Court has, in fact, issued a notice to the company, following the filing of a Special Leave Petition by the Income Tax Department, against an order of the Delhi High Court, which, in September 2008, had dismissed the appeal made by the Income Tax Department,” it added.

The apex court had issued a notice to the company on the plea by the Income Tax Department that Moser Baer India had evaded tax in 2000-01.