The Hindu : New Delhi News : HCL asked to pay Rs. 100 crores

Online edition of India's National Newspaper
Wednesday, Dec 15, 2004

New Delhi

New Delhi

HCL asked to pay Rs. 100 crores

NEW DELHI, DEC. 14. The Income-Tax Appellate Tribunal has asked HCL Corporation to pay Rs. 100 crores in the next three months and thereafter Rs. 15 crore every month. This would be pending the final outcome of the case of alleged evasion of tax on which a Rs. 805-crore demand has been made on the company.

When contacted, senior company officials on condition of anonymity told PTI that the tribunal had asked the company to make the interim payment till final outcome of the case.

The tribunal will start hearing the case from March.

The company said in a statement: "HCL Corporation is the holding company of HCL Technologies and HCL Info System. By way of clarification this dispute is completely unrelated to HCL Infosystems Limited or HCL Technologies Limited. This has no impact on the investors and shareholders, Board of Directors or employees of HCL Technologies or HCL Infosystems."

It further said the Commissioner of Income Tax (Appeals) Delhi has on December 3, 2004, confirmed a demand of Rs. 805 crores on HCL Corporation Ltd. The dispute arose sometime in February 2004 and raises certain complex issues relating to interpretation of law, recourse to valuations principles, and jurisdiction of Indian tax authorities over overseas transactions.

HCL Corporation has preferred appropriate appellate remedies before the Income-Tax Appellate Tribunal and sought a stay on the operation of the disputed demand.

Since the matter is sub judice, it would not be appropriate to discuss the merits of the case. However, based on legal opinion HCL Corporation is confident that its stand will be finally vindicated, it said. — PTI

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