Amagi Media Labs Limited has informed the Exchange about the order passed by the Income Tax Department
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The Income Tax Department, Bengaluru, has passed an assessment order for Assessment Year 2023-24, categorizing certain overseas entities as 'resellers of IT products' and proposing a transfer pricing adjustment of ₹17,91,09,474 (approximately ₹17.9 crore). The Company disagrees with this classification, stating these entities are 'IT service providers', and plans to file an appeal before the appellate authority. There is no impact on the company's operational activities.
The adjustment creates a potential tax liability of ₹17.9 crore. While the company plans to challenge the order, shareholders should monitor the appeal outcome as it could affect financials if the adjustment is upheld.