Dabur India Receives Income Tax Notice of Rs. 110.33 Crore From Income Tax Dept, Firm Planning to Appeal:

Dabur India Receives Income Tax Notice of Rs. 110.33 Crore From Income Tax Dept, Firm Planning to Appeal Dabur India Limited has recently received an income tax re-assessment order from the income tax department of Rs. 110.33 Crore for the financial year 2017-18. The company claims that a part of the tax demand is due to a mistake because some income that was already included in the original tax assessment for AY 2018-19 was counted again by error. Additionally, the company says that a tax demand of Rs. 36.77 crore was imposed without a proper discussion or explanation in the tax order. The firm is now planning to file an appeal before the Commissioner of Income Tax or another appropriate forum regarding the demand. The company is also thinking of filing a rectification petition as per Section 154 to correct errors in the demand calculations. The firm believes the final decision will be in its favour and the impact will be limited, as the company has the expectations from the higher forums that the demand will be reduced significantly. The Income Tax Authority is claiming the Dabur company is serving incorrect claims for tax deductions associated with in-house Research and Development (R&D) under Section 14A of the Income-tax Act, 1961. Even so, Dabur is confident in its stance. The stock closed at Rs. 497.60, dropping 1.77% before the announcement.