HCL Infosystems Wins ₹14.9 Cr Tax Dispute at Supreme Court

HCL Infosystems Limited has received a final order from the Supreme Court dismissing the Income Tax Department's Special Leave Petition. The dispute pertained to the taxability of ₹60.80 crores compensation received from HP in FY 1997-98 following the termination of a joint venture agreement. Initially treated as a capital receipt by HCL Infosystems, the Assessing Officer and CIT(Appeals) deemed it taxable capital gain, leading to a demand of ₹14.90 crores. However, the Income Tax Appellate Tribunal and Delhi High Court ruled in favor of HCL Infosystems, a decision now upheld by the Supreme Court's dismissal of the SLP. This outcome confirms the compensation as a non-taxable capital receipt.