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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Awaiting price reaction for this filing.
Panacea Biotec has received a Demand Order dated February 27, 2026, from the Income Tax Department (Deputy Commissioner, Central Circle 29, Delhi) raising an aggregate demand of about ₹45.71 Crore for Assessment Year 2015-16. The demand arises from disallowance of certain expenditure under Section 37 of the Income Tax Act, with the tax authorities alleging that expense categorisation was in violation of Medical Council of India (MCI) Regulations. The company has called the demand 'non-maintainable', stating its revised tax filings show no taxable income due to brought-forward losses. It plans to file a rectification application and an appeal before the appellate authority, and does not expect any significant impact on its financials or operations.
While the demand size is notable (₹45.71 Crore), the company's strong defence citing brought-forward losses and its plan to appeal suggests limited near-term financial damage. However, the dispute could create short-term uncertainty around the stock and may invite scrutiny on past tax filings.