A tax demand notice of over Rs 29,000 crore has been slapped by the Income Tax Department on UK’s Cairn Energy plc including Rs 18,800 crore of back dated interest.

Cairn against whom a draft assessment order of Rs 10,247 crore had been issued by the IT Department on January 22, 2014 on alleged capital gains the company made in a 2006 reorganisation of its India business, was last month issued a final assessment order.

Cairn Energy has said that “The assessment order is in the amount of Rs 10,247 crore (approximately $1.6 billion) plus interest back dated to 2007 totalling Rs 18,800 crore (approximately $2.8 billion).”

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