The Bombay High Court's Goa Bench has directed tax authorities to “not pass final orders without permission" in relation to show cause notices sent to Delta Corporation and its subsidiaries, the company informed the exchanges on October 24.
The Bombay High Court's Goa Bench has directed tax authorities to "not pass final orders without permission" in relation to show cause notices sent to Delta Corporation and its subsidiaries, the company informed the exchanges on October 24.
The High Court considered writ petitions filed by the gaming company and directed tax authorities "not to pass any final orders on the show cause notices without prior permission of the High Court", it added.
The Bench has "fixed dates for completion of pleadings, and the hearing and final disposal of such writ petitions," it said.
On September 22, Delta had disclosed demands for payments received for shortfall of tax from the Directorate General of GST Intelligence, Hyderabad.
As per the demand, notices were sent to Delta Corp and its subsidiaries as follows -
Delta Corp: close to ₹11,140 crore; subsidiary Highstreet Cruises and Entertainment: near ₹3,290 crore; and subsidiary Delta Pleasure Cruise Company: about ₹1,766 crore.
Background
On September 25, Delta Corp received a notice for a tax shortfall of ₹11,140 crore, whereas, its subsidiaries were issued notices for an amount totalling ₹5,682 crore. The alleged shortfall in the payment of tax pertained to the period between July 2017 and March 2022.
Delta Corp also received fresh notices of alleged shortfall in the payment of Goods and Services Tax (GST) to the tune of ₹6,384 crore, as per a regulatory filing made by the casino chain operator on October 14.
Company
Delta Corp, the casino operator, on Oct 11 reported a 1.68 percent rise in its Q2FY24 net profit to ₹69.4 crore from ₹68.25 crore in a year ago period.
The company's consolidated revenue during the quarter rose 0.2 percent to ₹270.6 crore from ₹270 crore, year-on-year (YoY).
On the operational front, the company's earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased by 0.1 percent to ₹100.3 crore in Q2FY24 from ₹100.4 crore in Q2FY23.