I-T attaches Coca-Colas bank a/cs.

(From The Economic Times)

Byline: Hema Ramakrishnan and M Padmakshan

PUNE/ : The income-tax department has attached the bank accounts of Coca-Cola India in Delhi, Mumbai and Pune to recover what the department claims are outstanding tax dues.

Although the disputed demand is about Rs 287 crore, the tax department can only recover around Rs 77 crore at this juncture - this is what the company usually spends on its ads and promotional activities annually. Various appellate authorities have granted a stay on recovery of the balance Rs 210 crore.

Coca-Cola's case is reckoned to be among the more high-profile tax dispute cases in recent times, though the demands relate mainly to disallowance of expenses. Revenue authorities are now targetting recovery of arrears to bolster tax collections in the coming months.

The bank accounts of Coca-Cola India were attached on September 30 after tax authorities rejected …