The Income Tax Department has imposed a penalty of Rs 103.63 crore on Tata Chemicals for violation related to the disallowance of interest. The penalty was levied under Section 270A of the Income Tax Act for disallowance of interest under section 36(1)(iii) of the Act, as stated in a regulatory filing by Tata Chemicals.
Tata Chemicals disclosed that it has received this order from the National Faceless Assessment Centre, Income Tax Department. In response, the company has expressed its intent to appeal against this order before the National Faceless Appeal Centre, citing the merits of the matter, prevailing law, and the advice of counsel. It is optimistic about receiving favorable orders from the appellate authorities.
As a part of the Tata group, Tata Chemicals is steadfast in its approach towards addressing this issue and seeking a resolution through the appropriate legal channels.
After this announcement, shares of Tata Chemicals settled 0.31% higher at Rs 1,035.10 per cent on the BSE.
The company is gearing up to navigate through this challenge and is committed to keeping its stakeholders informed about any further developments.