MPS Limited has informed the Exchange about Disclosure u/r 30 of SEBI Listing Regulations, w.r.t. Assessment Order/ Demand Notice under Income Tax Act, 1961, for the Assessment Year 2023-24.
MPSLTD · price
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MPS Limited received an Assessment Order from the Income Tax Department for Assessment Year 2023-24, wherein the returned income has been enhanced by INR 48,238,909. The tax demand has been raised at INR 217,800,272. The company disputes the demand citing an incorrect tax rate applied, INR 6.35 crores in interest charges under Section 234B, and non-consideration of foreign tax credit worth INR 1.15 crores. Penalty proceedings have also been initiated under Section 270A for alleged under-reporting of income. The company intends to file an appeal and rectification application under Section 154 of the Act.
The company claims no material impact on its financial position, but the INR 21.78 crore tax demand and initiation of penalty proceedings could create uncertainty for investors. The stock may see short-term pressure until the matter is resolved through appeals.