Hitachi Energy Faces Rs 26.07 Crore Income Tax Demand Over Disallowance of Delayed Receivable Interest

Hitachi Energy India Limited, a leading power technology company, has recently informed the stock exchanges about the receipt of an income tax order raising a demand of Rs 26.07 crore for the Assessment Year 2022-23. The demand relates to certain disallowances made by the Income Tax Department.

As per the disclosure made by Hitachi, it has received an income tax order issued under section 143(3) read with section 144C(13) read with section 144B of the Income Tax Act, 1961, along with a demand notice under section 156 of the Income Tax Act, 1961, for the AY 2022-23 from the Assessment Unit, Income Tax Department.

The demand includes income tax of Rs. 16,39,87,200 along with an interest of Rs. 9,67,08,310. This demand has been raised after the income tax department allegedly disallowed interest on delayed receivables and the Group Management Fee.

However, the company disagreed with this demand, calling it arbitrary, unjustified, and unsustainable in laws based on the evaluation of facts and prevailing law. Therefore, it has decided to challenge the order and notice by filing an appeal before the Income Tax Appellate Tribunal (ITAT) within the specified time.

The company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) to the BSE Limited and the National Stock Exchange.