Cipla receives additional Rs 773.44 crore tax demand from income tax office
Leading pharmaceutical company Cipla has been served an additional tax demand of Rs 773.44 crore by the Income Tax Office. The demand notice, covering the assessment years 2015-16 to 2022-23, was received by Cipla on 15 and 16 July 2024.
According to the company’s regulatory filing with BSE, the tax demand stems from various disallowances made by the IT Authority. These include disallowances related to short deductions under Section 80IE of the Income Tax Act, weighted deductions under Section 35(2AB), and the disallowance of various expenditures under Section 37(1) of the Act.
Cipla’s share price declined by 0.56 per cent, ending the day’s trade at Rs 1,507.50 apiece on the BSE.
The additional demand, including interest, follows assessment and reassessment orders dated 12 July 2024. Cipla emphasised that they believe the demands are not tenable in law. “Cipla has adequate factual and legal grounds to substantiate its position and does not expect any material impact on its financial or operational activities due to this order,” stated the exchange filing. The company intends to pursue appeals against the orders under applicable laws.
First Published: Jul 16 2024 | 6:44 PM IST