What exactly did the Delhi High Court decide?

The Court ordered a ₹5.37 crore refund to Microsoft India with Section 244A(1A) interest after an eight‑year delay. In a related ruling, it restrained recovery of tax demands during appeal when the taxpayer pays 20% of the disputed amount. Together, the orders push for timely refunds and protect cash during litigation.

How does Section 244A interest benefit taxpayers?

Section 244A provides interest on delayed refunds, compensating taxpayers for the time value of money. Sub‑section 1A adds further interest where delays are attributable to the department. This creates a financial deterrent against administrative delays and supports more predictable cash flows for companies awaiting refunds.

What is the 20% rule during income‑tax appeals?

If a taxpayer deposits 20% of the disputed demand while an appeal is pending, recovery actions are paused. The Delhi High Court reaffirmed this protection, helping companies avoid coercive collection that strains working capital during legitimate appellate processes. It preserves status quo until higher authorities decide the dispute.

Does this change the outlook for MSFT stock?

The ruling is a modest positive for Microsoft’s India cash flows and compliance certainty, but it does not change the global investment case. Key near‑term catalysts remain earnings on January 28, margins in cloud, and guidance. Watch for any India‑specific tax disclosures and cash flow commentary in the results.

Law and Government

MSFT Stock Today: January 12 Delhi HC Orders 8-Year Tax Refund, With Interest

ByHuzaifa Zahoor January 12, 2026January 12, 2026

The Delhi High Court’s order on Microsoft India spotlights the income tax department refund d issue for multinationals. On January 12, the Court directed a ₹5.37 crore refund with Section 244A(1A) interest after an eight‑year delay and restrained recovery when 20% of disputed demand is paid during appeal. For Indian investors, this reduces cash lockups and compliance risk for MNCs. Shares of MSFT closed at $472.85, down 1.10%. Investors now watch the January 28, 2026 earnings date for updated guidance.