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Budget News

  • HAL rises on receiving income tax refund of Rs 791 cr
  • March 31,2023  12:03
  • The state-owned aerospace company said that the order was passed allowing research and development (R&D) expenditure of Rs 2,504.16 crore (Rs 1,770.79 crore for AY 2013-14 and Rs 733.37 crore for AY 2014-15) as capital expenditure, resulting in refund of Rs 790.66 crore (Rs 295.21 crore for AY 2013-14 and Rs 495.45 crore for AY 2014-15). The refund includes interest of Rs 201.24 crore, it added.

    “The company has received income tax refund order from the Office of Joint Commissioner of Income Tax (OSD) of the Income Tax Act 1961 for the assessment years 2013-14 & 2014-15 in pursuant to the direction of ITAT, Bangalore to allow R&D expenditure as capital expenditure under Sec 35(1) (iv) of the income Tax Act 1961, which was disallowed 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 31 December 2022, the Government of India held 75.15% stake in the company.

    The company's consolidated net profit rose 23.8% to Rs 1,155.19 crore despite of 3.9% decline in net sales to Rs 5,665.54 crore in Q3 FY23 over Q3 FY22.

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