In a major setback to Zydus Lifesciences, it received Rs 284.58 crores income tax demand notice to its subsidiary, Zydus Healthcare.
The demand, communicated under section 143(1) of the IT Act for the assessment year 2023-2024, originates from the CPC, Income Tax Department.
Zydus Life reported in an exchange filing that the tax intimation was issued due to apparent errors during the processing of ZHL’s return of income. The identified mistakes included the disallowance of claims for deductions under sections 80-IE and 80-JJAA of the Income Tax Act without a basis and the inadequate credit of taxes deducted/paid.
“The company strongly believes that once the rectification will be made, the entire demand will be deleted,” Zydus Lifesciences said. ZHL has already disagreed with demand on the e-filing portal of the Income Tax Department.
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