Assessment order received under Section 143(3) read with 144C(3) read with 144B of the Income Tax Act, 1961 for the Assessment Year 2023-24(corresponding to the Financial Year 2022-23)
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Indegene Limited has received a final income tax assessment order from the Income Tax Department for AY 2023-24 (FY 2022-23). The department has made transfer pricing adjustments of INR 123.41 crore to the returned income and raised a tax demand of INR 43.69 crore (including interest). This appears to relate to international transactions between India and the USA, given the company has filed for resolution through the Mutual Agreement Procedure (MAP) under the India-USA Double Taxation Avoidance Agreement. The company states it believes its positions are well-supported and expects no material adverse impact on its financial position or operations. They will also pursue remedies under the domestic appellate framework.
The INR 43.69 crore tax demand is a significant liability if upheld, but the company is contesting it through MAP and domestic appeals. While not yet a confirmed loss, this creates uncertainty around financial outflows and could weigh on investor sentiment in the near term.