Alkem Laboratories receives Income Tax Order worth Rs.375 Crores

Alkem Laboratories Limited has received re-assessment orders from the IT Authority under Sections 143(3) and 147 of the Income-tax Act, 1961, which have denied a portion of the deduction claimed under section 80IE of the Income-tax Act, 1961, according to an exchange filing.

The received income tax orders is worth Rs.375 crores for the assessment years 2020-21 and 2022-23. The company received the order on Tuesday.

The tax order have disallowed some of the deduction claims, and the IT authorities has disputed Rs.375.14 crores. “However, the company added that no amount is payable due to the utilisation of available MAT credit,” Alkem stated in an exchange filing.

The matter involves the alleged claim of an excess deduction under Section 80IE of the Income Tax Act of 1961.

Alkem informed the exchange that the Income Tax Department had undertaken a survey at several of its locations and subsidiaries on September 14, 2023. “The Company is fully collaborating with the officials of the IT Department and are responding to the queries made by them,” Alkem stated in its statement.

The company will likely to challenge the order before the appellate authority. “The Company assumes that the disputes under the aforementioned orders are unjustified, and it has sufficient factual and legal grounds to support its position under the law. The Company intends to file appeals against the aforementioned order under the appropriate laws,” Alkem stated.