Dabur India Limited has an income tax re-assessment order for ₹110.33 crore for FY 2017-18. The company attributes part of the demand to an inadvertent error, stating that income already included in the assessment for AY 2018-19 was considered again.
Dabur also alleged an additional demand of ₹36.77 crore was raised without due discussion. Dabur plans to contest the tax demand by filing an appeal before the Commissioner of Income Tax (Appeals) or another relevant authority.
The company will also file a rectification petition under Section 154 to correct discrepancies in the tax calculations. Dabur was also accused of incorrect tax deductions for in-house Research & Development (R&D) and under Section 14A of the Income-tax Act, 1961 by the Income Tax Authority.
Dabur will have minimal impact from this as there are higher tax forums that will reduce the demand, he added. Dabur is confident of its position regarding the matter and is pursuing all available legal options, the company said in the statement. In another case, Mphasis Ltd received ₹232.37 crore tax demand notice on March 31, for TDS on overseas payments.
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