Lanco Infratech to get income tax reimbursement of Rs175 crore1 min read . Updated: 20 Oct 2015, 02:26 AM IST
Lanco to receive the reimbursement after its subsidiary Lanco Kondapalli Power won a Supreme court case
Bengaluru: Lanco Infratech Ltd on Sunday said it will now receive an income-tax reimbursement of ₹ 175 crore after its subsidiary Lanco Kondapalli Power Ltd (LKPL) won a Supreme court case.
The company had been running into legal tangles with the Andhra Pradesh Power Coordination Committee and AP Discoms with regard to claiming of minimum alternate tax (MAT) for the power purchase agreement it had with the government.
In 2012, after the Appellate Tribunal for Electricity passed an order in favour of LKPL to claim the MAT for the period 2001-2012, AP Power Coordination Committee and AP DISCOMS moved the Supreme Court.
The discoms had objected to the company claiming MAT between 2001-2005 citing that Lanco had availed the tax holiday under Section 80-IA of the Income Tax Act. The State Commission, too, had earlier allowed the company to claim MAT for the period 2006 to 2009 but not from 2001 to 2005.
The SC order on 16 October comes as relief for the debt ridden company. "As a result of this favourable order, LKPL is entitled for the reimbursement of income-tax of about ₹ 75 crore paid by it for the financial years 2001 to 2012 along with interest till the date of payment after adjusting the adhoc amount of ₹ 70 crore already received," Lanco said in a statement.