UltraTech Cement Limited has informed the Exchange about Order received from Deputy Commissioner of Income-tax Central Circle, Mumbai 1(4)
ULTRACEMCO · price
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UltraTech Cement has received an income tax assessment order under Section 143(3) of the Income Tax Act for Assessment Year 2023-24. The tax demand amounts to Rs. 808.78 crores including interest. The assessing officer has made certain additions and disallowances related to tax holiday claims, transfer pricing adjustments, and ESOP expenses. The company believes it has strong legal grounds to challenge the entire demand as similar grounds have been upheld in its favor by appellate authorities in previous years. The company plans to file an appeal with the Commissioner of Income Tax (appeals) within the prescribed timeline and does not expect any impact on its financial operations.
While the tax demand of Rs. 808.78 crores is significant, the company appears confident of overturning it based on past favorable rulings. An adverse outcome could affect profitability, but shareholders face limited risk given the company's legal position and planned appeal.