Delta Corp Jumps Over 8% After Bombay High Court Restrains Rs 16,194-Crore Tax Notice
Bombay HC directed the DG of GST Intelligence, Hyderabad, not to pass orders in the alleged tax shortfall of Rs 16,194 crore.
Shares of Delta Corp. surged over 8% on Wednesday after the Bombay High Court granted interim relief on the Rs 16,194 crore tax notices against the company.
The court directed the Directorate General of GST Intelligence, Hyderabad, not to pass orders in the alleged tax shortfall of Rs 16,194 crore without prior permission of the court, according to an exchange filing on Tuesday.
The company also said that the dates have been fixed for the completion of pleadings and the hearing and final disposal of writ petitions.
The casino operator had received an intimation for payment of shortfall tax under the Central GST Act and the Goa GST Act from the Directorate General of GST Intelligence on Sept. 22, which comprised the demand amount along with interest and penalties for the period of July 2017 to March 2022.
The company received an intimation to pay an alleged tax liability of Rs 11,140 crore, while three of its subsidiaries, Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises, received tax notices totaling Rs 5,682 crore.
The company explained that the amount mentioned in the notice is calculated based on the gross bet value of all games played at the casinos during the specified period.
Shares of the company rose as much as 8.19% to Rs 140.65 apiece, the highest level since Oct. 13. It pared gains to trade 4.19% higher at Rs 135.45 apiece as of 10:21 a.m. This compares to a 0.13% advance in the NSE Nifty 50.
It has fallen 36.3% on a year-to-date basis. Total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 37.
The lone analyst tracking the company maintains a 'buy' rating, according to Bloomberg data.