MTNL receives IT refund of Rs.1461.68 Crores

Mahanagar Telephone Nigam Ltd (MTNL) has announced that pursuant to the order of Income Tax Appellate Tribunal for the past years, the Income Tax Department has refunded Rs 1461.68 crores to the Company on July 16, 2007. Both the Company and I.T. Department were engaged in lengthy litigation for the past several years with respect to the issue of License Fee and 80IA deduction. Finally after the verdict of ITAT and Commissioner of Income Tax (Appeals), the I.T. Department has refunded Rs 1461.68 crores inclusive of Tax and significant amount of Interest. The Income Tax has accepted the views that license fee is an operational expenditure and allowable at par with other operators.

Further an estimated amount of Rs 2000 crores is yet to be refunded by the I.T. Department on account of license fee & 80IA.

The stock was trading at Rs.170.30, up by Rs.7.50 or 4.61%. The stock hit an intraday high of Rs.170.30 and low of Rs.161.60. The total traded quantity was 914625 compared to 2 week average of 536132.

Source : Equity Bulls

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