Cipla, the pharmaceutical company, has recently received an income tax demand totaling Rs 773.44 crore from the Office of the Deputy Commissioner of Income Tax in Mumbai. This demand pertains to assessment years ranging from 2015-16 to 2022-23, following assessment and re-assessment orders issued on July 12. Upon receiving the orders on July 15 and 16, Cipla noted that the demand includes interest and arises from various disallowances made by the IT Authority.
The disallowances encompass short deductions under Section 80IE of the Income-tax Act, 1961, weighted deductions under Section 35(2AB) of the Act, and disallowance of various expenditures under Section 37(1) of the Act. The orders meticulously outlined the reasons for the additional tax demand, citing specific sections of the Income-tax Act.
Despite the significant amount of the demand, Cipla has emphasized that it does not find the orders legally sound. The company contends that it has substantial factual and legal grounds to challenge the demands and intends to appeal the orders as per the applicable laws. Notably, the total demand of Rs 773.44 crore includes interest but does not factor in any potential refunds for the assessment years under review. (Source: ANI)