The company said the additional demand of Rs 773.44 crore includes interest.
“The IT Authority vide assessment and re-assessment orders dated 12th July, 2024 has raised additional demand for tax on account of various disallowances including short deduction u/s 80IE of the Act, weighted deduction u/s 35(2AB) of the Act and disallowance of various expenditure u/s 37(1) of the Act, etc,” Cipla said in statement to stock exchanges.
Cipla said it believes that the demands are “not tenable” in law and would pursue appeals against the IT department order.
“The company has adequate factual and legal grounds to substantiate its position and does not expect any material impact on financial or operations of the company due to the said order,” it said.
The additional demand was raised for disallowances related to deduction of profits and gains derived from the business of developing, maintaining, and operating the infrastructure facilities, expenditure on R&D, business or professional expenses.Cipla on February 6, 2023 told exchanges that I-T department officials have conducted searches at some of its offices and manufacturing units.Cipla is scheduled to announce its quarterly results for Q1FY25 on July 26.
Shares of Cipla were down 0.56% to close at Rs 1507.50 on BSE on Tuesday, while the benchmark Sensex rose 0.06% to end at 80,716.55 points.
