“There is no material impact on financial, operation or other activities of the Company due to the said order, since there is no expected cash outflow,” Alkem added.
Alkem Laboratories has received a tax penalty worth INR 338.38 crores from the income tax department for assessment year 2023-24.
The order was passed under section 143(3) read with section 144C (3) of Income-Tax Act, 1961 for disallowance of part of deduction claimed u/s 80IE of the Income-tax Act, 1961 and addition on account of transfer pricing adjustments.
Pursuant to such an order tax amount of INR 338.38 crores has been disputed by the IT authority.
“There is no material impact on financial, operation or other activities of the Company due to the said order, since there is no expected cash outflow,” Alkem added.
Alkem believes that the dispute under the order is not tenable and it has adequate factual and legal grounds to substantiate its position.
Alkem said that it would pursue appeal against the said order under the applicable laws.
“However, no amount is payable by the Company due to utilization of available MAT credit,” Alkem said in an exchange filing.
Source from: https://legal.economictimes.indiatimes.com/news/corporate-business/alkem-laboratories-hit-with-3383-crore-tax-penalty-by-income-tax-department/130502688
