Mumbai (Maharashtra) [India], July 16 : Cipla, has been served an income tax demand amounting to Rs 773.44 crore by the Office of the Deputy Commissioner of Income Tax, Mumbai.
According to an exchange filing, the demand covers assessment years from 2015-16 to 2022-23, following assessment and re-assessment orders issued on July 12.
The orders were received by Cipla on July 15 and 16. The demand is inclusive of interest and arises from various disallowances made by the IT Authority.
These disallowances include short deductions under Section 80IE of the Income-tax Act, 1961, weighted deductions under Section 35(2AB) of the Act, and disallowance of various expenditures under Section 37(1) of the Act.
The orders issued, outlined several reasons for the additional tax demand.
Short deduction under Section 80IE pertains to deductions in respect of profits and gains from certain undertakings or enterprises in specific states.
Weighted deduction under Section 35(2AB), relates to expenditure on scientific research.
Disallowance under Section 37(1), involves the disallowance of certain expenditures which are not considered wholly and exclusively for business purposes.
Despite the substantial amount of the demand, Cipla maintains that the orders are not tenable in law. The company has asserted that it has adequate factual and legal grounds to contest the demands and plans to appeal the orders under applicable laws.
The total demand of Rs 773.44 crore includes interest but does not account for any potential refunds for the assessment years in question.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor