Shares of Delta Corp gained 5 percent at the open on October 25, a day after the troubled Casino major received an interim relief from the Bombay High Court at Goa on show-cause notices from the tax department. By 10:40am, the stock was trading at Rs 134.30, nearly 3 percent higher than close on October 23.
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According to a regulatory filing, the Bombay High Court at Goa had examined the writ petitions submitted by Delta Corp (and its subsidiaries) regarding the income tax show-cause notices and issued an order, prohibiting authorities from making "definitive decisions without prior court approval". Dates have been fixed for completion of
pleadings, and the hearing and final disposal of such writ petitions.
The stock came under focus after the company received a direct tax notice on September 22 for Rs 11,140 crore. Apart from the company, its subsidiaries - Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises - also received notices worth Rs 5,682 crore.
Since then, the stock has come under pressure. It reached a 52-week low and fell almost 9 percent in one day last week. Over the last one month, the stock has lost over 22 percent.
Also read: Delta Corp: Game over or will the house win as always?
Casinos and online gaming companies have been under pressure after the GST Council's announcement of a 28 percent tax levy "on the entire face value of chips purchased for playing".
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