Hyderabad-based pharmaceutical company Laurus Labs, on Wednesday, disclosed that the Income Tax Department has imposed a penalty of Rs 3.86 crore for disallowed deductions.
“The matter pertains to a deduction claimed under Section 32AD of the Income Tax Act, amounting to Rs 11.87 crore, which was disallowed and subsequently added back to the company’s total income for the assessment year (AY) 2016-17,” the company stated in a regulatory filing.
Laurus Labs further clarified that the penalty proceedings would not have any financial impact on the company. This is because the Income Tax Appellate Tribunal (ITAT) had already allowed the deduction of Rs 11.87 crore in an order issued in November 2024.
