Welspun Enterprises Limited has informed the Exchange about General Updates
WELENT · price
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Welspun Enterprises has disclosed that its subsidiary, Welspun Aunta-Simaria Project Private Limited, received a Notice of Demand under Section 156 of the Income Tax Act, 1961. The demand arises from an Assessment Order for AY 2024-25 where the Income-tax authority assessed taxable income at Rs. 33.34 crore after adding adjustments under ICDS III and Section 43CB. The dispute concerns the computation method for the Hybrid Annuity Model (HAM) projects. The company believes the demand is not maintainable and plans to file an appeal before the Commissioner of Income-tax (Appeals) Tribunal. The company states it does not foresee any material impact on its financial, operational, or other activities.
The tax demand of Rs. 33.34 crore appears to be contested by the company, which expects no material impact. However, pending resolution of this tax dispute could create uncertainty around subsidiary financials until the appeal is decided.