Cipla Faces Rs 773.44 Crore Income Tax Demand

Drug major Cipla has received a Rs 773.44 crore demand notice from the income tax department for assessment years 2015-16 to 2022-23. The company disputes the demands and plans to appeal. Cipla does not foresee any significant impact on its financials or operations.

Drug major Cipla on Tuesday announced that it has been served a Rs 773.44 crore demand notice by the income tax department, covering assessment years 2015-16 to 2022-23.

The Income Tax Authority, through orders dated July 12, 2024, has levied additional tax demands due to various disallowances of expenses, the Mumbai-based pharmaceutical company confirmed in a regulatory filing.

Notably, the Rs 773.44 crore demand does not account for any refunds for the assessed years.

In response, Cipla stated, "The company believes that the demands under the above referred orders are not tenable in law."

The drugmaker asserts it has robust factual and legal grounds to challenge the orders and expects no material impact on its financial or operational standing.

Cipla plans to appeal against the said orders under applicable laws, the statement added. Shares of Cipla closed 0.56% lower at Rs 1,507.50 on the BSE by the end of Tuesday.

(With inputs from agencies.)