Cipla Faces Rs 773.44 Crore Tax Demand Notice

On Tuesday, pharmaceutical major Cipla announced that it has received a significant tax demand notice amounting to Rs 773.44 crore from the Income Tax (I-T) Department. This notice pertains to the assessment years 2015-16 through 2022-23.

Details of the Tax Demand

The I-T Authority, through assessment and re-assessment orders dated July 12, 2024, has issued this additional tax demand. The demand is primarily due to various disallowances of expenses. It is important to note that this Rs 773.44 crore demand does not account for any refunds that may be due for the mentioned assessment years.

Cipla’s Response

Cipla has expressed its belief that the demands under these orders are not legally justifiable. The company is confident in its factual and legal grounds to contest the demand and does not anticipate any significant impact on its financial performance or operations as a result of this order.

The company plans to challenge the orders through the appropriate legal channels. Cipla remains committed to defending its position and ensuring that its interests are protected.

Market Impact

On the day of the announcement, Cipla’s shares closed down by 0.56% at Rs 1,507.50 per share on the Bombay Stock Exchange (BSE).

This report is based on information provided by the Press Trust of India (PTI) and has not been edited by Freefire staff.