Max India Ltd Subsidiary Faces Rs. 31.53 Crore Demand from Income Tax Department, Expects NIL Liability After Rectification
Max India Ltd's Step Down Wholly Owned Subsidiary, Antara Purukul Senior Living Limited (APSLL), received an assessment order under section 143(3) of the Income Tax Act, 1961 for the assessment year 2024-25. The order raised a demand of Rs. 31.53 Crore, primarily due to non-consideration of brought forward losses and other eligible tax attributes. APSLL, however, believes certain mistakes apparent on record have occurred and expects the resultant tax liability to be NIL after giving due effect to these. A rectification application has been filed with the Income Tax Department, and an appeal before the Commissioner of Income Tax (Appeals) is in process against the additions made in the assessment order. APSLL remains confident of a favourable outcome and does not expect any material financial impact on its financial statements.
Key Highlights
- Max India Ltd's subsidiary, APSLL, received an assessment order from the Income Tax Department for the assessment year 2024-25, raising a demand of Rs. 31.53 Crore.
- APSLL believes certain mistakes apparent on record have led to the demand, primarily due to non-consideration of brought forward losses and other eligible tax attributes.
- APSLL expects the resultant tax liability to be NIL after giving due effect to the mistakes apparent on record.
- A rectification application has been filed with the Income Tax Department, and an appeal before the Commissioner of Income Tax (Appeals) is in process.
- APSLL remains confident of a favourable outcome and does not expect any material financial impact on its financial statements.