Panacea Biotec Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
PANACEABIO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 2.1 pts less than Nifty Microcap 250 and 1.8 pts less than its Pharmaceuticals peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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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.