Cipla, the drug manufacturer, received a tax notice of ₹773.44 crore from the Income Tax department for the years 2015-16 to 2022-23, according to a statement released on Tuesday. This amount includes interest.
The Income Tax Authority issued the demand on July 12, 2024, citing various disallowances, including deductions under sections 80IE and 35(2AB) and disallowed expenses under section 37(1).
Cipla believes these demands are legally unfounded and plans to appeal the order. The company is confident that it has strong grounds to contest the decision and does not foresee any significant impact on its finances or operations.
The demand relates to profits and gains from infrastructure development, R&D expenses, and business expenses. This follows an incident on February 6, 2023, when IT department officials searched some of Cipla’s offices and manufacturing units.
Cipla will announce its quarterly results for Q1FY25 on July 26. On Tuesday, Cipla’s shares fell by 0.56% to ₹1507.50 on the BSE, while the Sensex rose by 0.06% to close at 80,716.55 points.
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