Kathmandu, Nepal, Aug 23, 2019: The Supreme Court (SC), the apex court of the country, has on Monday quashed a decision of the Large Taxpayers' Office (LTO) to impose Rs 39 billion tax on the Ncell Private Limited.
The SC issued the verdict in favor Ncell, a largest private telecom company of the country, and against of the LTO’s decision for determining Rs 62.63 billion as applicable capital gains tax on Ncell buyout deal.
Responding to the writ petition filed by the Ncell, a five-member full bench of justices Tej Bahadur K.C., Purushottam Bhandari, Dambar Bahadur Shahi, Sushmalata Mathema and Manoj Kumar Sharma issued the ruling.
The Ncell on April 23 had moved to the SC challenging LTO’s decision to impose the capital gains tax. The Ncell had fled the case seeking annulment of the LTO’s decision, just two days before the expiry of the seven-day deadline for settling Rs 39 billion as the balance of the CGT assessment including fines and interest.
The Ncell had maintained in the writ that the tax assessment was against the SC verdict issued by the full bench led by Chief Justice Cholendra SJB Rana on February 7 this year.
In the writ, the Ncell had argued that the LTO's tax assessment has not only violated constitutional rights but also the SC verdict further adding that neither it was given any information about the tax assessment nor was it asked for any tax filing before the tax was assessed.
