Hero MotoCorp Wins Income Tax Appeal of Rs 2,336.71 Cr
Hero MotoCorp wins a major income tax appeal from the ITAT Delhi Bench, overturning a Rs 2,336.71 crore demand and relieving itself of a significant financial burden.
by Damodharan N
Updated Jul 26, 2024
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Hero MotoCorp Ltd. has achieved a major legal victory following a recent decision from the Income Tax Appellate Tribunal (ITAT), Delhi Bench. On July 24, 2024, the ITAT ruled in favor of the company, overturning an income tax demand of Rs. 2,336.71 crore that had been imposed by the Income Tax Department.
The company had previously reported this issue on January 31, 2019. The tax demand was related to re-assessment proceedings for the Assessment Year 2011-12. The company contested the validity of the re-assessment and argued that full disclosure had been made during the original assessment.
The ITAT's ruling addresses two main issues: the validity of the re-assessment and the addition under section 28(iv) of the Income Tax Act, 1961. With this favorable decision, the entire tax demand of Rs. 2,336.71 crore has been quashed.
This ruling marks a significant victory for the Hero MotoCorp and relieves it from a substantial financial burden.
Market Reaction
After Hero MotoCorp's announcement about winning the income tax appeal late on July 25th, the stock saw a strong positive response when the market opened on July 26th. Initially, the price climbed from ₹5,417 to ₹5,438 by 9:15 - 9.17 AM, then briefly dipped before rising again.
By 10:06 AM, it hit ₹5,492, reaching ₹5,500 by 10:34 AM, and peaking at ₹5,542 by 11:32 AM. This early rally reflects a favorable market reaction to the tribunal’s ruling. We'll need to check the closing price to get the full picture of today's trading performance.
NSE Hero MotoCorp Live share price Here
Hero MotoCorp
Hero MotoCorp is a leading global two-wheeler manufacturer, known for its innovative and sustainable products. With a presence in 115 countries and over 9,000 customer touchpoints worldwide, Hero MotoCorp has empowered millions through technology-driven excellence.
The company has a legacy of 40 years, holding the title of the largest two-wheeler manufacturer in the world by unit volume. Its vision is to be the future of mobility, focusing on creating value through affordable solutions, fostering collaboration, and inspiring sustainability.
Hero MotoCorp is committed to a green future, with goals to achieve zero waste to landfill facilities by 2025, carbon-neutral operations by 2030, and water-positive facilities by 2025. It boasts 750 patents, employs over 1,000 engineers and technology experts, and operates two world-class tech centers.
Hero MotoCorp Wins Income Tax Appeal of Rs 2,336.71 Cr - FAQs
1. What was the recent legal victory for Hero MotoCorp?
Hero MotoCorp won an income tax appeal against a Rs. 2,336.71 crore demand from the ITAT Delhi Bench on July 24, 2024.
2. What was the nature of the income tax demand overturned by the ITAT?
The demand was related to re-assessment proceedings for the Assessment Year 2011-12, which Hero MotoCorp contested.
3. When did Hero MotoCorp report this tax issue previously?
The company first reported the tax issue on January 31, 2019.
4. What did the ITAT ruling address?
The ruling addressed the validity of the re-assessment and an addition under section 28(iv) of the Income Tax Act, 1961.
5. How did the market react to the announcement on July 26, 2024?
The stock price initially rose from ₹5,417 to ₹5,438, briefly dipped, and then peaked at ₹5,542 by 11:32 AM.
6. What was the highest share price of Hero MotoCorp on July 26, 2024?
The highest share price was ₹5,542 by 11:32 AM.
7. When did Hero MotoCorp's stock price hit its first peak on July 26, 2024?
The first peak was at ₹5,492 by 10:06 AM.
8. What are Hero MotoCorp’s sustainability goals?
The company aims for zero waste to landfill by 2025, carbon-neutral operations by 2030, and water-positive facilities by 2025.
9. How many countries does Hero MotoCorp have a presence in?
Hero MotoCorp has a presence in 115 countries.
10. What is Hero MotoCorp’s position in the global two-wheeler market?
Hero MotoCorp is the largest two-wheeler manufacturer in the world by unit volume.
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