IFCI Limited receives Rs. 13.64 Crore additional demand from Income Tax Dept.
IFCI Limited received an order under Section 154 of the Income-Tax Act, 1961, resulting in an additional demand of ₹13.64 Crore. This is due to a reduction in brought-forward losses for Assessment Year 2019-20. The company is contesting the demand and has sufficient MAT credit to absorb it.
The company has stated that there is no material impact on its financials as it has sufficient MAT credit available to absorb the additional demand. Therefore, the impact on operations and other activities is also not envisaged.
The company has received an additional tax demand, which is a negative event. However, the impact is mitigated by the company's ability to contest the demand, obtain a stay, and utilize MAT credit, leading to a neutral sentiment.
IFCI Limited has received an order under Section 154 of the Income-Tax Act, 1961, from the Assistant Commissioner of Income Tax. This order raises an additional demand of ₹13.64 Crore due to a reduction in brought-forward losses for Assessment Year 2019-20.
The company is contesting the original assessment order and demand for Assessment Year 2019-20 before the CIT(A). IFCI Limited has already secured a stay against the existing demand and is in the process of filing an application for a stay on this additional demand.
Furthermore, IFCI Limited possesses sufficient Minimum Alternate Tax (MAT) credit, which can be set off against the outstanding demand. The company states that there is no material impact on its financials at present, as the MAT credit is adequate to absorb the additional demand. Consequently, no impact on the company's operations or other activities is anticipated.
What to do with a filing like this
IFCI Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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