IFCI Limited has informed the Exchange about Action(s) initiated or orders passed - the Company has received an order under Section 154 of the Income-Tax Act, 1961.
IFCI · price
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IFCI Limited has received a rectification order under Section 154 read with Section 143(3) of the Income-Tax Act, 1961 from the Assistant Commissioner of Income Tax. The order raises an additional tax demand of Rs. 13.64 Crore for Assessment Year 2019-20 due to a reduction in brought-forward losses. The original assessment order for AY 2019-20 is already being contested before CIT(A). The company has already obtained a stay against the existing demand and is filing an application for stay of the additional demand. IFCI has stated that it has sufficient MAT credit available to set off the additional demand, so no material financial or operational impact is expected.
Shareholders need not worry as the company says the additional demand will be absorbed using available MAT credit, with no material hit to financials or operations. The ongoing appeal before CIT(A) and stay applications further limit any immediate risk.