LTIMindtree Secures Interim Stay from Karnataka High Court
Mumbai-based IT solutions provider LTIMindtree Ltd announced on Tuesday, December 17, that it has secured an interim stay from the Karnataka High Court regarding a legal challenge that questions the legality and validity of an order.
In a regulatory filing, LTIMindtree stated, “We hereby inform that the company had filed a writ petition in the Hon’ble High Court of Karnataka challenging the legality and validity of the order issued under Section 74 of the CGST Act, 2017/KGST Act, 2017 from the office of the Principal Commissioner of Central Tax, Bengaluru, issued by the Joint Commissioner.”
The hearing on this matter took place on December 17, 2024, during which the high court granted the interim stay on the proceedings concerning the disputed order until the next hearing date. The petition was filed against the Union of India and the Principal Commissioner of Central Tax, Bengaluru East.
The tax authorities had issued a demand for ₹87.9 crore, which includes ₹43.9 crore in tax and ₹44 crore in penalty, along with applicable interest for the period from April 2018 to January 2023.
While LTIMindtree remains optimistic about a favorable outcome based on preliminary assessments and legal counsel, the company does not anticipate that this dispute will have a material financial impact. Based on a preliminary assessment, prevailing law, and advice of counsel, the company is hopeful of an ultimate favorable resolution and does not reasonably expect the same to have any material financial impact on the company,” it added.
As the legal process continues, the next hearing will be pivotal in determining the future developments of this case.
