Now, Mitsui arm challenges 2,400 crore retro tax order

NEW DELHI: The government is facing a fresh international challenge to the policy of retrospective tax amendments adopted by it. Now, Earlyguard, a British subsidiary of Japanese conglomerate Mitsui & Co, has commenced arbitration under the India-UK Bilateral Investment Treaty after income tax authorities raised a Rs 2,400-crore demand related to a transaction that took place in 2007.

While Earlyguard commenced arbitration proceeding in February, the Mitsui & Co disclosed the details, while releasing its financial results earlier this month.