Rectification order passed by Centralised Processing Centre, Income tax Department, Bangalore for AY 2021-22.

The Income Tax Department's Centralised Processing Centre (CPC) in Bangalore has issued a rectification order under Section 154 of the Income Tax Act for Assessment Year 2021-22. The order levies interest of Rs.1.63 Crores on alleged non-payment of TDS on buy back of shares, in addition to an existing tax demand of Rs.3.45 Crores (from a December 2022 order under Section 143(3)), bringing the total aggregate demand to Rs.5.08 Crores. The company states it has already paid Rs.2.58 Crores towards TDS on buy back, which the department has not considered. The company plans to contest this order before the appropriate authority within prescribed timelines, as the matter is already under appeal.