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Tuesday, Dec 14, 2004

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Tribunal grants stay on I-T demand notice to HCL Corpn

Our Bureau

New Delhi , Dec. 13

THE Income-Tax Appellate Tribunal (ITAT) has granted a stay on the over Rs 800-crore demand notice raised by the Income-Tax Department on HCL Corporation, which is the founding entity of HCL Technologies and HCL Infosystems.

Reliable sources said that the stay has been granted subject to the condition that a sum of Rs 100 crore is deposited with the Tribunal by February 28, 2005. Hearing in this case before the Tribunal is to be held in March.

HCL Corporation is said to have approached the ITAT on appeal against the I-T Department's order after the Commissioner of Income-Tax (appeals) had granted marginal relief to the assessee against the Rs 800 crore plus demand raised by the income-tax assessing officer.

Informed sources said that the dispute revolves around the issue of "notional capital gains".

When contacted, Mr S.L. Narayanan, Corporate Vice-President - Finance, HCL Technologies, pointed out that it would not impact the day-to-day working of HCL Technologies or HCL Infosystems.

"This has no impact on the investors and shareholders, board of directors or employees of HCL Technologies or HCL Infosystems. It will not have any effect on Mr Nadar continuing to pursue the goals and objectives of HCL Technologies as its Chairman & CEO. However, I cannot comment on the merits of the case as the matter is subjudice," he added.

HCL Corporation holds 56 per cent stake in HCL Technologies and 52 per cent stake in HCL Infosystems.

The HCL group was raided by the I-T department in January 2002. The Department claims that the documents seized during the raid allegedly provide documentary evidence of capital gains tax evasion.

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