KIMS Faces ₹306.97 Crore Income Tax Demand

18 Apr 2024 , 03:35 PM

The hospital chain Krishna Institute of Medical Sciences Ltd (KIMS) announced on Tuesday, April 16, that SPANV Medisearch Lifesciences Private Ltd, a subsidiary, has been served with a demand notice for ₹306.97 Crore under Section 156 of the Income Tax Act, 1961.

Regarding the assessment year 2022–2023, the notice poses questions about a number of financial transactions, such as the payment of unsecured loans back and the receipt of share capital and share premium.

The letter states that SPANV unintentionally neglected to provide justifications for the inquiries made by the Income Tax Department for the specified assessment year.

On the other hand, KIMS has determined internally that the demand notice is fully defendable given the circumstances and is not legally sustainable. "Based on the internal assessment the listed entity does not expect to have any material financial impact, as the said demand notice is not sustainable in law and is wholly defendable on the facts," stated KIMS.

It was further clarified that, for the evaluation year 2022–2023, SPANV was not a KIMS subsidiary. SPANV plans to file an appeal against the assessment under Part A of Chapter XX of the Income-tax Act, 1961 in response to the demand notice.

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