HAL receives income tax refund of Rs 427 cr

Hindustan Aeronautics (HAL) on Friday announced that it has received income tax refund order worth Rs 427.45 crore from the Office of Deputy Commissioner of Income Tax for the assessment year 2011-12.

The company said that the order was passed allowing research and development (R&D) expenditure of Rs 595.23 crore as capital expenditure, resulting in refund of Rs 427.45 crore. The refund includes interest of Rs 176.93 crore, it added.

The order was passed in compliance with the order passed by the Income Tax Appellate Tribunal (ITAT) in favour of HAL in the dispute pertains to allowing R&D expenditure as 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, HAL stated in the press release.

HAL is engaged in carrying out design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories primarily serving Indian defence programme. As of 30 September 2022, the Government of India held 75.15% stake in the company.

The company reported 44.2% jump in consolidated net profit to Rs 1,221.22 crore in Q2 FY23 as compared to Rs 846.74 crore posted in Q2 FY22. Revenue from operations fell 7.3% year on year to Rs 5,144.79 crore in the quarter ended 30 September 2022.

Shares of Hindustan Aeronautics were up 0.37% to Rs 2,784.50 on the BSE.

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