Realty company Sobha Ltd has been issued demand notices totaling nearly Rs 46 crore by the Income Tax Department. The notices, pertaining to Assessment Year (AY) 2016-17 and 2022-23, were issued by the Deputy Commissioner of Income Tax, Central Circle- 1(4) in Bengaluru.
In a regulatory filing on Monday, Sobha revealed that it has received demand notices under section 156 of the Income Tax Act, 1961 for Rs 13.12 crore and Rs 32.68 crore related to AY 2016-17 and AY 2022-23 respectively. These notices are due to disallowances of certain expenses and other additions.
Sobha has stated its intention to appeal before the Commissioner of Income Tax (Appeals) against the said orders within the prescribed timelines. The company affirmed that it possesses legal and factual grounds to support its case and is currently evaluating the potential implications of these orders on its financial statements.
Sobha emphasized that its operations and other activities remain unaffected by these developments. The Bengaluru-based firm is recognized as a leading real estate entity in the country.