Tax & Penalty15 May 2026, 11:53 am
Amagi Faces ₹17.9 Cr Income Tax Adjustment for AY 2023-24
AI Summary
Amagi Media Labs Ltd received an income tax assessment order under Section 143(3) of the Income Tax Act, 1961, pertaining to Assessment Year 2023-24. The Income Tax Department has categorized certain overseas entities as "resellers of IT products," leading to an adjustment of ₹17,91,09,474. Amagi contends that these entities are "IT service providers" and plans to challenge the re-computation through an appeal. The company states that the financial impact is limited to the adjustment amount, with no impact on operational activities.
Key Highlights
- Income Tax Department order results in ₹17.9 Cr adjustment for AY 2023-24.
- Amagi to appeal the order, disputing entity classification.
- The adjustment relates to transfer pricing on inter-company transactions.
- Financial impact limited to the adjustment amount; no operational impact.
- Order received on May 14, 2026.