Puravankara Limited has informed the Exchange about receipt of Notice of Demand from Deputy Commissioner of Income Tax, Central Circle -1(2), Bengaluru.
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Puravankara Limited has disclosed receiving two tax demand notices from the Deputy Commissioner of Income Tax, Central Circle -1(2), Bengaluru. The first demand is for Rs. 39.34 Crores related to Assessment Year 2016-17, and the second is for Rs. 12.53 Crores related to Assessment Year 2017-18, totaling Rs. 51.87 Crores. The demands arise from disallowance of certain expenses and additions on a notional basis for the earlier year, and denial of indexation for cost of acquisition of shares for the later year. The company states it has no impact on its operations and is in the process of filing appeals before the Commissioner of Income Tax (Appeals), asserting strong legal and factual grounds for its case.
The combined tax demand of Rs. 51.87 Crores is material and could impact cash flows if upheld, though the company is actively contesting the notices. The share price may see negative sentiment in the short term given the large demand amount and historical tax disputes.