FMCG major Dabur India Limited has disclosed receiving an income tax reassessment order totaling ₹110.33 crore for the financial year 2017-18. The company attributes part of the demand to a double-counting error, where income already assessed in AY 2018-19 was inadvertently included again.
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– Disputed Amount: ₹36.77 crore of the total demand was raised without detailed justification in the order.
– Company’s Stand: Dabur asserts strong grounds for appeal, citing procedural gaps and calculation errors.
– Next Steps:
– Filing an appeal with the Commissioner of Income Tax (Appeals)
– Submitting a rectification plea under Section 154 to correct computational errors
Dabur expects minimal impact on its finances, anticipating a significant reduction in the demand during appellate proceedings. The tax department’s claim centers on disputed deductions for:
– In-house R&D expenses
– Expenses under Section 14A of the Income-tax Act, 1961
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Dabur’s shares closed 1.77% lower at ₹497.60 ahead of the disclosure. The company remains confident in its legal position, as per the disclosed information.
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