Puravankara Limited Receives Income Tax Demand Notices Totaling ₹51.87 Crore
Puravankara Limited received income tax demand notices totaling ₹51.87 Crore for A.Y. 2016-17 (₹39.34 Cr) and A.Y. 2017-18 (₹12.53 Cr). The company is filing an appeal with strong grounds and is assessing financial statement implications, with no operational impact.
The total demand of ₹51.87 Crores is material. While the company plans to appeal and states no operational impact, the financial implications and the need for an appeal indicate a medium impact.
The company has received significant demand notices from the Income Tax department, which is a negative development.
Puravankara Limited has announced the receipt of demand notices from the Deputy Commissioner of Income Tax, Central Circle -1(2), Bengaluru. For Assessment Year (A.Y.) 2016-17, the company received a notice for ₹39.34 Crores, related to disallowance of certain expenses and additions on a notional basis.
For A.Y. 2017-18, a demand notice of ₹12.53 Crores was received, attributed to the disallowance of certain expenses and denial of indexation for the cost of acquisition of shares. The company has strong legal and factual grounds to contest these orders and is in the process of filing an appeal before the Commissioner of Income Tax (Appeals) within the prescribed timelines.
Puravankara Limited is currently assessing the implications of these orders on its financial statements. The company has stated that there is no impact on its operations or other business activities.
What to do with a filing like this
Puravankara Limited filed this with the NSE as a statutory disclosure, categorised under taxation. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Puravankara Limited. Read the original for the full detail.