On November 28, Torrent Pharmaceuticals Limited, one of India’s prominent pharmaceutical companies announced that the Income Tax Department had imposed a penalty of Rs. 2.31 crore. The fine was levied for alleged discrepancies in the company’s tax filings.
This penalty was issued under Section 271(1)(c) of the Income Tax Act, 1961, which deals with penalties for concealing income or providing inaccurate details in tax returns.
The order was issued by the Assessment Unit of the Income Tax Department on November 27, 2024, and the company received the official notice late that night at 10:48 PM. The order alleges that Torrent Pharmaceuticals made certain tax adjustments that were not in compliance with regulations.
How to Compute Income from Salary with Tax Planning, Click Here
In response to the order, Torrent Pharmaceuticals has decided to appeal the penalty. In an official statement submitted to the stock exchanges, the company is confident in resolving the matter. “Based on the Company assessment, the Company will pursue an appeal and is hopeful of a favorable outcome at a higher forum and does not expect the said Order to have any material financial impact on the Company,” the statement read.
The fine does not appear to pose a serious financial threat to the company, as it has assured stakeholders of its financial stability and compliance with regulatory requirements. Torrent Pharmaceuticals has also pointed out its intention to challenge the penalty through proper legal channels.
How to Compute Income from Salary with Tax Planning, Click Here
Torrent Pharmaceuticals is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), trading under the codes 500420 and TORNTPHARM respectively. Torrent Pharmaceuticals’ legal and financial teams will now focus on deleting the penalty in the appeals process. Stakeholders and investors are likely to closely follow the developments in the coming weeks to see how the company handles this challenge.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
