Panacea Biotec Limited won its tax appeal as ITAT cancelled the Rs 9.16 crore demand and removed the disallowance under Section 14A of the Income Tax Act.
Khushi Jain | Apr 30, 2026 |
Panacea Biotec Limited informed stock exchanges like National Stock Exchange of India and BSE Limited about an important update in its tax case for the financial year 2019–20 (Assessment Year 2020–21).
Earlier, the tax department had asked the company to pay about Rs. 9,16,00,000 (Rs. 9.16 crore). This demand arose because the tax officer did not allow expenses of around Rs. 3,44,00,000 (Rs. 3.44 crore) under Section 14A of the Income Tax Act, which relates to expenses linked with tax-free income. However, on April 29, 2026, the Income Tax Appellate Tribunal (ITAT) gave its decision in favor of the company
It cancelled the earlier order of the Commissioner of Income Tax (Appeals) and removed both the disallowed expenses and the tax demand. This means the company no longer has to pay Rs. 9,16,00,000, which is a positive outcome for its finances. The company shared this update publicly as required under SEBI rules to keep investors informed.
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