CRISIL Limited has received a reassessment order from the Income Tax Authority for AY 2017–18, resulting in a demand of ₹121.20 crore, the company said in a regulatory filing.
The order relates to FY 2016–17 and pertains to income from merged subsidiaries, which the company said had already been consolidated and offered to tax.
According to the filing, the Assessing Officer acknowledged that there was no escapement of income but allegedly made incorrect tax computations by adding unwarranted adjustments and not granting credit for taxes already paid, leading to the demand.
It said, “The subsidiaries’ income was already merged with Crisil Limited’s income and tax was offered. Accordingly, Assessing Officer (AO) agreed that there was no escapement of income from tax and issued a clean order accepting the income offered to tax. However, the AO erroneously computed the tax by making unwarranted additions and failing to give credit for taxes already paid, which resulted in an incorrect demand order.”
CRISIL said there is no immediate impact on its financials or operations and that it will file a rectification application along with an appeal against the order.
