HG Infra Engineering Ltd announces the tax department has closed a show-cause notice with nil demand, resolving allegations of under-reporting and unexplained expenditures. This victory eliminates financial liabilities, boosting investor confidence amid ongoing infra projects and prior GST scrutiny.
Tax Triumph for Infra Giant
HG Infra Engineering, a key player in road and infra development, receives a major relief as the Income Tax Department closes a contentious show-cause notice issued earlier. The order, under Section 69C of the IT Act, alleged under-reporting of income and unexplained costs but concludes with no demand, vindicating the company's position.
Key Highlights:
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Nil Demand Confirmed: Full closure; no penalties or liabilities imposed on HG Infra.
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Swift Resolution: Follows subsidiary's prior notices; aligns with company's legal defense strategy.
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No Business Impact: Operations and finances unaffected, per disclosures to exchanges.
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Context of Scrutiny: Builds on GST notice (Rs 220 Cr, FY23) response; firm expects favorable outcomes.
This clears hurdles, signaling robust compliance. Infra stocks rally!
Sources: NSE India, India Infoline, HG Infra Disclosures