Nokia India may take the Rs 20.8 billion ($370M) tax dispute with income-tax authorities back to the Delhi High Court as the Commissioner of Income-tax Appeals has dismissed its appeal.

In March this year, the Indian income-tax department had served the Finland-based handset maker's Indian unit with the tax demand for a period of five years starting 2006-07. Nokia challenged the tax demand in the Delhi High Court, which referred the case to the appeals division of income tax authorities. But, the Commissioner of Income-tax Appeals dismissed the appeal.

The handset maker expressed disappointment on the decision, and said would explore all options available to it.

Speaking on the issue, Nokia said, "Nokia is disappointed by the decision of the Commissioner of Income-tax Appeals, and will now examine all options open to it. These include taking the case back to the Delhi High Court."

The company also claimed that it was in complete compliance with Indian laws as well as the terms of bilateral tax accord between India and Finland.

India is one of the most crucial markets for Nokia, which is struggling to prevent further erosion of its market share. The company could not withstand cut throat competition and lost most of its global market share to rivals like Samsung and Apple.

Nokia shares were trading 2.3 per cent down at 2.63 euros apiece in the recent trading.