TVS Srichakra Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
TVSSRICHAK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
TVS Srichakra has received an Income Tax Demand Notice of ₹29.47 crores (including tax and interest) from the Income Tax Department's Assessment Unit for FY 2017-18 (AY 2018-19). The demand arises from a disallowance under Section 14A of the Income Tax Act, with penalty proceedings also proposed under Section 270A for alleged under-reporting of income. The company has stated it believes the demand lacks merit, as the assessing officer did not consider the detailed responses and case laws already submitted. TVS Srichakra plans to file an appeal with the Commissioner of Income Tax (Appeals) within 30 days. Management has said it does not expect any material financial implications from this order.
This is a contested tax demand, not an admitted liability, so near-term cash outflow is unlikely. However, the large size of the demand (₹29.47 crores) versus the company's earnings could weigh on sentiment until the appeal outcome is known.