Delhi HC stays Rs 1,140 crore tax demand against Oyo

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In a big relief to OYO Hotels & Homes, the Delhi High Court has stayed the recovery of tax demand of Rs 1,140 crore raised under provisions of the so-called angel tax for the assessment year 2021-22 (Apr-Mar).

The demand was raised under Section 56(2)(viib) of the Income Tax Act on account of the addition to the income after the assessee had issued compulsorily convertible preference shares to its holding company Oravel Stays. This investment by Oravel, according to the department, into its Indian subsidiary was an income, thus taxable.

However, Oyo’s…



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Delhi HC stays Rs 1,140 crore tax demand against Oyo



In a big relief to OYO Hotels & Homes, the Delhi High Court has stayed the recovery of tax demand of Rs 1,140 crore raised under provisions of the so-called angel tax for the assessment year 2021-22 (Apr-Mar).

The demand was raised under Section 56(2)(viib) of the Income Tax Act on account of the addition to the income after the assessee had issued compulsorily convertible preference shares to its holding company Oravel Stays. This investment by Oravel, according to the department, into its Indian subsidiary was an income, thus taxable.

However, Oyo’s…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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