SMS Pharma: Income Tax demand reduced to ₹40.28 Lakhs from ₹7.19 Cr

SMS Pharmaceuticals Ltd has received a rectification order from the Income Tax Department, significantly reducing a previously issued tax demand. Following the company's rectification application under Section 154 of the Income Tax Act, 1961, the tax demand for Assessment Year 2018-19 has been lowered from ₹7.19 Crores to ₹40.28 Lakhs. The original demand stemmed from an assessment order involving income addition and disallowance of deductions. The company has stated that there will not be any material impact on its financial, operational, or other activities at this stage and has also filed an appeal before the Commissioner of Income Tax (Appeals).