United Spirits Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
UNITDSPR · price
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United Spirits Limited has received two income tax assessment orders from the Deputy Commissioner of Income Tax, Central Circle 2(1), Bengaluru. For FY 2019-20, a tax demand of INR 179.2 crore (including interest) has been raised, and for FY 2020-21, a demand of INR 166.2 crore (including interest) has been raised, taking the combined total to INR 345.4 crore. The disallowances are similar to those made in prior years. The company is in the process of filing appeals before the Income Tax Appellate Tribunal (ITAT) and stay applications before the Assessing Officer. Management believes it has a strong case and does not expect any material financial impact based on its risk assessment methodology.
While the combined tax demand of INR 345.4 crore is sizeable, the company is actively contesting both orders and expects to prevail on appeal, limiting long-term financial impact. Shareholders may see short-term sentiment pressure, but no immediate cash outflow is expected as the company pursues stays on the demands.