Alkem Labs receives Income Tax order, disputes ₹333.38 Cr tax

Alkem Laboratories Ltd has received an order from the Deputy Commissioner of Income Tax, Central Circle 8(1), Mumbai, for the assessment year 2023-24. The order disallows a part of the deduction claimed under Section 80IE of the Income-tax Act, 1961, and includes transfer pricing adjustments. This has resulted in a disputed tax amount of ₹333.38 Crores. However, the company states that no amount is currently payable due to the utilization of available MAT credit, and therefore, there is no expected cash outflow. Alkem Laboratories believes the dispute is not tenable and plans to appeal the order, asserting no material impact on its financial, operational, or other activities.