Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015 ( the Listing Regulations )
MANKIND · price
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Mankind Pharma has received an order from the Office of the Deputy Commissioner of Income Tax, Central Circle 29, New Delhi, raising an additional tax demand of INR 91.01 crores (including interest) for Assessment Year 2023-24. The demand relates to adjustments under sections 80IC/80IE (tax incentives) and disallowance of certain expenditures under section 37(1) of the Income-tax Act. The company states it believes the demand is not tenable in law and plans to file an appeal, and is also pursuing a rectification petition since prepaid taxes from merged entities (Lifestar Pharma and Magnet Labs) were not considered. Management has indicated it does not expect any material impact on the company's financials or operations.
The INR 91.01 crore demand is sizeable but the company has not provided for it and intends to contest it through appeal and rectification. For shareholders, the key risk is any future cash outflow if appeals fail, but near-term impact on earnings or operations is expected to be limited based on management's current assessment.