LTIMindtree gets interim stay on tax order for ₹88 crore from Karnataka High Court – CNBC TV18
Mumbai-based IT solutions provider LTIMindtree Ltd on Tuesday (December 17) said it has secured an interim stay from the Karnataka High Court in a legal challenge concerning the legality and validity of an order.
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“…we hereby inform that the company had filed writ petition in Hon’ble High Court of Karnataka challenging the legality and validity of the order issued u/s 74 of the CGST Act, 2017/KGST Act, 2017 from the office of the Principal Commissioner of Central Tax, Bengaluru issued by Joint Commissioner. The hearing was held on December 17, 2024, and an interim stay has been granted,” LTIMindtree said in a regulatory filing.
The company had filed a writ petition on December 9, 2024, contesting the denial of a zero-rated supply benefit and the subsequent recovery of a refund for input tax credit that was purportedly granted in error.
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During the hearing on December 17, 2024, the high court granted the interim stay on the proceedings based on the disputed order until the next date of hearing. The petition is against the Union of India and the Principal Commissioner of Central Tax, Bengaluru East.
The tax authorities had issued a demand for ₹87.9 crore, including ₹43.9 crore in tax and ₹44 crore in penalty, along with applicable interest for the period from April 2018 to January 2023.
While LTIMindtree is optimistic about a favourable outcome based on preliminary assessments and legal counsel, the company does not expect this dispute to have a material financial impact. The case remains ongoing, and the next hearing will determine further developments.
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“Based on a preliminary assessment, prevailing law and advice of counsel, the company is hopeful of an ultimate favourable resolution and does not reasonably expect the same to have any material financial impact on the company,” it added.
Shares of LTIMindtree Ltd ended at ₹6,675, down by ₹62.05, or 0.92%, on the BSE.
(Edited by : Shoma Bhattacharjee)
