Panacea Biotec Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
PANACEABIO · price
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The Income Tax Appellate Tribunal (ITAT), New Delhi, has ruled in favor of Panacea Biotec in long-pending tax disputes covering assessment years 2005-06 to 2012-13. The ITAT dismissed all 8 appeals filed by the Deputy Commissioner of Income Tax against the company and allowed 2 appeals filed by the company itself. It also quashed the original assessment orders passed by the Assessing Officer. As a result, all expense disallowances stand deleted and the total tax demand of ₹329.49 Crore raised against the company has been cancelled. This brings to a close tax cases that had been hanging over the company for over a decade.
This is a major positive for shareholders — a contingent tax liability of ₹329.49 Crore has been wiped out, removing a significant overhang on the company's financials and potentially freeing up cash flow and earnings going forward.