Hindustan Zinc Faces Rs 1,170 Crore Tax Demand
Indian mining company Hindustan Zinc recently disclosed that it has received a tax demand notice amounting to Rs 1,170 crore from the Income Tax department for the assessment year 2020-21. This sum includes accrued interest, as detailed in an official exchange filing dated July 30.
The company’s statement highlighted that the demand is rooted in disallowances and additions that resonate with past impositions. Notably, Hindustan Zinc emphasized that it has previously obtained favorable rulings from the Income Tax Appellate Tribunal regarding these very concerns in prior years.
In response to the order, the Vedanta subsidiary expressed its intention to lodge an appeal. The statement affirmed, “The company will file an appeal and corresponding stay application with the Income Tax Appellate Tribunal against the assessment order within the prescribed timelines.” Additionally, the company conveyed confidence in securing a favorable outcome through its appeal, maintaining that there will be no substantial financial impact.
Citing the favorable history of previous appeals on similar issues, the company remains poised for a constructive resolution. As a result, Hindustan Zinc does not foresee any significant financial implications stemming from the current assessment order.
Following this announcement, the firm’s stock concluded trading on a positive note, marking a 1.07 percent increase to Rs 640.5 on the National Stock Exchange (NSE) on July 30.
