HC permits CBI to probe Setty case

HC permits CBI to probe Setty case

Justice Subhash B Adi, however, directed them not to arrest Setty, and has directed CBI to submit the final report on the investigations on or before February 3.

Meanwhile, Setty has welcomed the decision of the High Court. “The CBI has been directed to place before the court by January 4 the evidence available against me to proceed with the case”, Setty said giving his interpretation of Thursday’s verdict. “I welcome the decision as I am sure there is no evidence against me”, he said.
Setty also dismissed rumours that he was planning to submit his resignation as legislator.

The Court, which also heard the matter related to Minister for Social Welfare D Sudhakar, accused of involvement in bank fraud and creating fake documents, granted an extension of stay on CBI proceedings.

Relief to Infy

A demand notice issued by the Commercial Tax Department on December 5 to Infosys Technologies to pay Rs 49.08 crore as tax on software exports and licences, within 10 days, was stayed by the High Court on Thursday.

However, Justice H N Nagmohan Das told Infosys to deposit 25 per cent of the money in two weeks time and another 25 per cent in the four weeks thereafter. The Commercial Tax department had chalked up the amount as tax plus penalty and interests under licensing of software, implementation charges and reversal of input tax on software exports from 2005-09.

Counsel for the petitioner, Arshad Hidayatulla argued that the implementation charges were already being taxed under the Union Finance Act, but the state was levying sales tax in the same, forcing the company to pay taxes twice for the same service.