HGS receives Income Tax assessment order for AY 2021-22, demands ₹15.49 crore
HGS received an income tax assessment order for AY 2021-22, demanding ₹15.49 crore due to disallowance of ₹34.31 crore foreign exchange loss. The company believes the loss is a business expense and plans to appeal. HGS also intends to seek rectification for an apparent error in interest computation. No material impact on operations is anticipated.
The demand of ₹15.49 crore, while significant, is not expected to have a material impact on the company's overall financial or operational activities. However, the potential for an appeal and rectification process introduces some level of uncertainty, warranting a medium impact assessment.
The company has received an assessment order with a demand of ₹15.49 crore, which is a negative development. Although the company plans to appeal and believes there's no material impact, the initial demand and disallowance are negative indicators.
Hinduja Global Solutions Limited (HGS) has received an assessment order under Section 143(3) of the Income Tax Act, 1961, passed by the Office of the Assistant Commissioner of Income Tax, Central Circle 2(3), Mumbai, for Assessment Year 2021-22. The order, dated April 1, 2026, disallowed a foreign exchange loss of ₹34.31 crore.
This disallowance resulted in a total demand of ₹15.49 crore, which includes interest of ₹6.95 crore. HGS strongly believes that the disallowed foreign exchange loss is a legitimate business expenditure allowable under Section 37 of the Income Tax Act, 1961. The company is currently reviewing the assessment order with its tax and legal advisors and intends to appeal the decision before the Commissioner of Income Tax (Appeals).
Additionally, HGS noted a potential error in the Notice of Demand concerning the computation of interest. The company plans to file for rectification of this order under Section 154 of the Income Tax Act, 1961. Despite the demand, HGS stated that there is no material impact on its financial, operational, or other activities.
What to do with a filing like this
Hinduja Global Solutions Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Hinduja Global Solutions Limited. Read the original for the full detail.