Aditya Birla Capital Limited informed the Exchange about the tax litigation.
ABCAPITAL · price
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Aditya Birla Capital received a tax demand notice of Rs. 194.54 crore from the Income Tax Department's Centralised Processing Centre (CPC) for Assessment Year 2025-26. The demand arose because advance tax credits of Rs. 222 crore paid by its now-amalgamated subsidiary Aditya Birla Finance Limited (ABFL) were not credited to the company's PAN after the amalgamation. The company filed a consolidated return offering to tax the combined income of ABFL and itself, but the CPC has not granted credit for taxes already paid by ABFL. The company considers this a technical issue due to non-migration of tax credits and states it will file for rectification. The NCLT had approved the amalgamation effective April 1, 2025.
The company states this will not have any material impact on its financial, operational, or other activities. The demand is a technical tax credit issue rather than an actual tax shortfall, and the company expects to resolve it through rectification with the Income Tax Department.