Lupin gets Rs 477-cr IT demand for AY 2022

The drug maker stated that it has received demand order from the Income Tax Department, Ministry of Finance of Rs 477.28 crore the assessment year 2021-22.

In an exchange filing, Lupin said, Notice of demand under Section 156 of the Income Tax Act (the Act) of r 477.28 crore received along with assessment order passed under Section 143(3) read with Section 144C(3) of the Act for the assessment year 2021-22.

The income tax demand arose on account of National Faceless Assessment Center (NFAC) not granting credit of advance taxes and foreign tax credit aggregating Rs 451.49 crore and inadvertently adjusting refund of Rs 16.98 crore.

The balance demand of Rs 8.81 crore relates to disallowance pertaining to recurring issues.

There shall be no material impact on the financials/operations of the company, as the demand is factually incorrect and is not tenable in law, stated the durg major.

The pharma company added that it will file rectification application with tax authority and appeal before the appellate authority in this matter.

Mumbai-based Lupin is an innovation-led transnational pharmaceutical company. It develops and commercializes a wide range of branded and generic formulations, biotechnology products and APIs in over 100 markets in the U.S., India, South Africa, and across the Asia Pacific (APAC), Latin America (LATAM), Europe and Middle East regions.

The pharmaceutical company reported consolidated net profit of Rs 613.12 crore in Q3 FY24, steeply higher than Rs 153.47 crore posted in Q3 FY23. Revenue from operations increased 19.67% YoY to Rs 5,079.88 crore in the quarter ended 31 December 2023.

The scrip fell 0.87% to Rs 1,598.55 on the BSE.

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