SEDEMAC Mechatronics Limited has informed the Exchange about the order received from the Income Tax Department
SEDEMAC · price
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SEDEMAC Mechatronics has received an order from the Income Tax Department's National Faceless Assessment Centre imposing a penalty of around ₹74.94 lakh under Section 270A of the Income Tax Act. The penalty relates to disallowance of weighted tax deduction claimed on in-house R&D expenditure under Section 35(2AB) for FY 2017-18 (AY 2018-19), even though the underlying matter is already pending before the Bombay High Court. The company plans to appeal the order before the appropriate appellate authority and is hopeful of a favourable outcome. Management has stated that the order is not expected to have any material financial impact on the company.
The penalty amount is small relative to the company's operations and management has stated no material financial impact is expected, so this is unlikely to move the stock significantly. However, investors should track the appeal outcome and the parallel Bombay High Court proceedings, as an adverse ruling there could set a precedent for additional tax liabilities.