Nokia Tax Row with Indian Income-Tax Authorities

The Delhi High Court on Thursday allowed Nokia Corp to sell its Chennai factory to Microsoft Corp,asking income-tax authorities to revoke the freeze on the Finland-based handset makers assets,removing an impediment that could have hampered one of the worlds most significant technology acquisition deals.The court also asked Nokias India unit to park a minimum of.2,250 crore in an escrow account as a safeguard to assuage the fears of the tax department,which has filed a claim over unpaid levies on software for phones made at the plant.It also asked Nokia to furnish a letter guaranteeing compliance with the order,when the dispute over the claim has been decided.As part of the $7.2-billion purchase by Microsoft of Nokias handset business that was announced in September,the Chennai factory had to be transferred to the US company by December 12,failing which the Finnish firm would have had to find another buyer for the unit or shut it.