We would like to inform you that Assessment Unit of Income Tax Department, under the faceless assessment proceedings, has passed an order under section 143(3) and issued a notice of demand order under section 156 of the Income-tax Act, 1961 for the assessment year 2023-24, as per details given in the letter.
NIITMTS · price
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The Income Tax Department has issued a demand of Rs. 14,93,39,220 (approximately Rs. 14.93 crore, including interest) against NIIT Learning Systems for Assessment Year 2023-24, under the faceless assessment scheme. The company says the demand arose due to apparent mistakes in the computation sheet, including short credit of prepaid taxes by the tax department. Based on professional advice, the company believes the demand is not sustainable and is in the process of filing a rectification application under Section 154 of the Income-tax Act. The company has stated it does not expect any material impact on its financials or operations.
This is a routine tax demand that the company is contesting as erroneous. While the headline amount may cause short-term sentiment pressure, the company's confidence in getting it rectified and its stated view of no financial/operational impact should limit any lasting damage to the stock.