Dodla Dairy Limited has informed the Exchange about Action(s) taken or orders passed
DODLA · price
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Dodla Dairy's wholly owned subsidiary, HR Food Processing Private Limited, has received an income tax assessment order under Section 143(3) of the Income Tax Act for Assessment Year 2024-25. The Income Tax Department has made certain additions and disallowances to the returned income, with a financial impact of INR 18.11 crores. The company disagrees with the order, stating the adjustments were made without adequately considering the merits, and is in the process of filing an appeal before the Commissioner of Income Tax (Appeates). Management believes the demand is not sustainable.
This is a potential tax liability of about Rs 18.11 crore on the subsidiary, but since the company is contesting it, the cash outflow is not immediate. If the appeal is unsuccessful, it could impact the subsidiary's financials; however, Dodla Dairy views the demand as not sustainable.