EIH Ltd Faces ₹92.56 Lakh Income Tax Penalty
EIH Ltd has received a penalty order from the Income-tax Department under Section 271(1)(c) of the Income-tax Act, 1961, for Assessment Year 2016-17, amounting to ₹92,56,326. The penalty is related to a Transfer Pricing Adjustment of ₹1.83 crore and a disallowance under Section 40(a)(i) of ₹0.84 crore. While the Commissioner of Income-tax (Appeals) provided partial relief, the consequential appeal-effect order is pending. The penalty is levied on a protective basis and is subject to modification. EIH Ltd believes it has grounds to contest the penalty and is pursuing further appeals. The company states the order does not relate to concealment of income. The financial impact is currently ₹92.56 lakh, subject to appellate outcomes.
Key Highlights
- EIH Ltd received an income tax penalty of ₹92.56 lakh.
- Penalty relates to Transfer Pricing and Section 40(a)(i) disallowances.
- Partial relief granted by CIT(A), further appeals are ongoing.
- Penalty is protective and subject to modification.
- Company contests the penalty, stating no income concealment.
Price Impact
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