• Notification Date: 06-12-2022
• Notification No: N/A

HAL receives Income Tax refund Order of Rs 427 Crore from the Office of Deputy Commissioner of Income Tax

Hindustan Aeronautics (HAL) reported on Friday that it has received an Income-tax refund order from the Office of Deputy Commissioner of Income Tax. The refund order is worth Rs.427.45 crore for the assessment year 2011-12. The order was passed allowing research and development (R&D) expenditure of Rs 595.23 crore as capital expenditure, resulting in the refund of Rs 427.45 crore, including interest of Rs.176.93 crore.  

The order was passed in compliance with that passed by the Income Tax Appellate Tribunal (ITAT) in favor of HAL. The order passed by the ITAT was in the dispute pertains to allowing R&D expenditure, since capital expenditure while computing taxable profit under Sec 35(1) (iv) of the Income Tax Act-1961, which was disallowed by the Income Tax Authorities during the assessment,” the company stated in the press release. 

The key functionalities of HAL are carrying out the design, development, manufacture, repair, and overhaul of aircraft, helicopters, engines, and related systems like avionics, instruments, and accessories primarily serving the Indian defense program. The Government of India held a 75.15% stake in the company as per data till 30 September 2022. 

The company reported a 44.2% rise in consolidated net profit to Rs 1,221.22 crore in Q2 FY23 as compared to Rs. 846.74 crores posted in Q2 FY22. Revenue from operations has gone down by 7.3% year on year to Rs 5,144.79 crore in the quarter ended 30 September 2022, as per that information revealed by Hindustan Aeronautics were up 0.37% to Rs 2,784.50 on the BSE.