Alkem Laboratories Limited has informed the Exchange that the Company has received an order passed by statutory authority under the Income-tax Act, 1961
ALKEM · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Alkem Laboratories received a tax assessment order from the Deputy Commissioner of Income Tax (Central Circle) for assessment year 2023-24. The IT Authority has disallowed part of deductions claimed under Section 80IE of the Income Tax Act and made transfer pricing adjustments. A tax amount of Rs. 333.38 Crores has been disputed. However, the company clarified that no amount is payable currently due to utilization of available MAT credit. The company stated there is no material impact on its financial or operational activities and believes the dispute is not tenable. The company intends to pursue an appeal against the order under applicable laws.
The immediate financial impact appears neutral as no cash outflow is expected due to MAT credit utilization. However, the large disputed tax amount of Rs. 333.38 Crores could create uncertainty if the appeal is not successful in subsequent years.