Mankind Pharma Gears Up for a Tax Showdown with Authorities

Mankind Pharma Ltd has announced it has been issued with further tax demands of ₹4181.6 million (₹418.16 crore) by the Income Tax Department. The tax department issued the demand order as a part of its ongoing assessment proceedings on account of reasons of adjustments against deductions under Section 80IC/80IE and disallowance of expenses under Section 37(1) of the Income-tax Act, 1961 and also due to certain TP adjustments and disallowance of depreciation on

 

intangible assets.The firm, in the filing with the regulators, said it feels the demand is not legally tenable and has solid factual and legal basis to challenge the order. Mankind Pharma showed its intent to appeal the valuation and has assured stakeholders that it does not see any material effect on its finances or business operations as a result of this notice.

 

This comes after a flurry of tax notices filed with the company in the past several months, as tax authorities intensify checks on compliance and deductions by big companies.

 

Source: CNBC-TV18