HCL Infosystems wins tax appeal, 16.67 Crore demand set aside

Court Stay ObtainedRegulatory & Legal View source PDF Explain this filing

HCL-INSYS · price

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Price reactionminutes from the announcement price · days from the prior close

-0.7%Reaction day

₹11.63

prior close

₹12.00

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used+0.2%-0.8% vs market

Computers Hardware & Equipments peers, median of 18sector+1.5%-2.2% vs sector

On the reaction day the stock moved 0.8 pts less than Nifty Microcap 250 and 2.2 pts less than its Computers Hardware & Equipments peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

-2.7

10m

-2.9

15m

-3.8

30m

-2.7

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-0.7+0.2-0.8+1.5-2.2

Next day

-2.0+0.2-2.2-0.7-1.2

-3.3+0.4-3.6+0.8-4.1

-2.7+0.7-3.4+0.2-2.9

-3.3+0.1-3.4-1.0-2.3

-4.6+0.7-5.2-0.3-4.3

-6.1+1.2-7.3+0.4-6.5

15d

-12.3+0.7-13.0-0.3-12.0

-13.8-1.2-12.6-1.3-12.5

-13.1-1.1-11.9-2.6-10.4

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UpDownMarket · Nifty Microcap 250Sector · Computers Hardware & Equipments peers, median of 18Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

HCL Infosystems won a tax appeal at CESTAT Allahabad. The tribunal set aside a 16.67 Crore service tax demand (plus interest and penalty) related to reverse charge on royalty paid outside India. Original order was from October 2018. Tax department can still appeal to a higher forum.

Likely market impact

Positive for the company as 16.67 Crore tax liability plus interest and penalty is set aside. Risk remains if department appeals further.