Hero Motocorp Receives Favorable Verdict from ITAT Regarding Tax Demand
Hero Motocorp recently announced that the company has obtained a favorable verdict from the Income Tax Appellate Tribunal (ITAT) with regards to a tax demand of ₹2,336 crore. This demand, stemming from re-assessment for the Assessment Year (AY) 2011-12, has now been quashed following ITAT’s decision in favor of Hero Motocorp.
The company had originally filed an appeal against the income tax demand, emphasizing that re-assessment was carried out despite full disclosures made during the original assessment. Consequently, ITAT ruled in favor of Hero Motocorp, validating the reassessment and Addition u/s 28(iv) of the Income Tax Act, 1961.
In other news, Hero Motocorp reported a 15% year-on-year (YoY) growth in sales for June 2024, amounting to 5,03,448 units. Notably, the domestic market witnessed a significant 16% YoY sales growth, reaching 4,91,416 units, while the export business experienced a decline of 15.48% YoY, with sales totaling 12,032 units. The company also achieved its highest-ever dispatches of the VIDA V1 scooter during this period.
The quarter ended June 30, 2024, showcased a 13.5% YoY surge in sales to 15.35 lakh units for the company. Furthermore, Hero Motocorp’s global business saw an impressive 44% YoY increase in sales during Q1FY25, attributed to the expansion of operations in Nepal, Colombia, Mexico, and Turkey. Meanwhile, domestic sales for the quarter climbed by 12.67% YoY to 14.84 lakh units.
Highlighting environmental efforts, Hero Motocorp proudly shared its attainment of the Zero-Waste-to-Landfill certification, having reduced overall waste generation by 40% in alignment with its target before 2025. Looking ahead, the company aims to expand its EV portfolio during the fiscal year by introducing additional mid- and mass-segment products.
Additionally, the company’s shares have exhibited strong performance, rising by nearly 32% since the beginning of the year, and garnering over 73% growth in the past year.
These developments underscore Hero Motocorp’s resilience and strategic advancements in the competitive automotive market, positioning the company for continued success in the future.
