Aditya Birla Capital Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
ABCAPITAL · price
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Aditya Birla Capital Limited received a tax demand notice of Rs. 194.54 crore from the Income Tax Department's Centralised Processing Centre. The demand arose after the NCLT-approved amalgamation of Aditya Birla Finance Limited (ABFL) into the company. The issue is purely technical - tax credits (advance tax of Rs. 222 crore and TDS of Rs. 816 crore) paid by ABFL under its PAN have not been transferred to the company's PAN after the merger, even though the company has already offered the combined income to tax. The company has clarified this is not a case of short payment of tax and will file for rectification with the Income Tax Department.
Low impact - this is a procedural tax credit migration issue following a legal amalgamation, not a penalty or fraud. The company expects no material impact on its financials as the taxes were already paid.