Dabur India gets Income Tax Demand worth Rs.110.33 Crore

Dabur India Limited has revealed that it received an income tax re-assessment order demanding Rs.110.33 crore for the financial year 2017-18.

The company claims that part of the demand is due to an unintentional error in which income already included in the first assessment for assessment year (AY) 2018-19 was factored in again. Furthermore, the demand of Rs.36.77 crore was elevated without sufficient discussion in the order.

The company plans to fight the demand by filing an appeal with the Commissioner of Income Tax (Appeals) or another relevant body. Dabur intends to submit a rectification petition under Section 154 to resolve errors in the demand calculation.

The company anticipates that the overall financial impact will be low because higher forums are expected to dramatically reduce demand.

The Income Tax Authority argues that Dabur claimed erroneous tax deductions for in-house research and development and under Section 14A of the Income-tax Act of 1961.

Despite this, Dabur is secure in its position. The stock closed at Rs.497.60, down 1.77% prior to the announcement.