Pharmaceutical giant Cipla has recently been served an additional tax demand amounting to ₹773.44 crore by the Income Tax Office. This demand pertains to assessment years 2015-16 to 2022-23.
The tax demand arises from various disallowances by the IT Authority, including:
- Short deductions under Section 80IE.
- Weighted deductions under Section 35(2AB).
- Disallowances under Section 37(1) for various expenditures.
Cipla has stated that it believes the tax demands are not legally tenable and plans to appeal against the orders. The company reassured that this demand would not materially impact its financial or operational activities.
Following the news, Cipla’s share price declined by 0.56%, closing at ₹1,507.50 on the BSE.
While Cipla prepares to challenge the tax demands, the situation underscores the ongoing scrutiny faced by large corporations regarding tax compliance.
