Date:02/03/2005 URL: http://www.thehindubusinessline.com/2005/03/02/stories/2005030202891000.htm

Back HCL tax case: Tribunal adjourns hearing

Our Bureau

New Delhi , March 1

THE Income Tax Appellate Tribunal on Tuesday adjourned the hearing on a dispute relating to Rs 800 crore demand notice raised by Income Tax Department on HCL Corporation.

The next hearing is slated for May 17, 2005.

It may be recalled that in December last year, the Income Tax Appellate Tribunal had granted a conditional stay on the Rs 800 crore demand notice raised by I-T Department on HCL Corporation. The dispute revolves around the issue of "capital gains,"

According to sources, the evasion was detected following the scrutiny of papers pertaining to a transaction the company had entered into with a Mauritius-based firm. "The company had off-loaded some of its shares to the Mauritius-based firm at prices lower than the market value," they claimed.

Sources said that the department had sought more time on Tuesday and therefore the matter could not be taken up.