SMS Pharma receives ₹7.19 Crore Income Tax demand notice for AY 2018-19
SMS Pharmaceuticals Limited received an Income Tax demand notice of ₹7.19 crore for AY 2018-19, dated March 30, 2026. Penalty proceedings for under-reporting income have also been initiated. The company is reviewing the order and expects no material impact on its operations.
While the company states there will be no material impact at this stage, a tax demand of ₹7.19 crore and initiated penalty proceedings could potentially affect future financials and operations, warranting a medium impact assessment.
The company has received a significant demand notice from the Income Tax Department and initiated penalty proceedings, which is a negative development.
SMS Pharmaceuticals Limited has received a Demand Notice under Section 156 of the Income Tax Act, 1961, from the Faceless Assessment Unit of the Income Tax Department. The notice, dated March 30, 2026, raises a demand of ₹7.19 crore for the Assessment Year 2018-19.
The company is also informed that penalty proceedings under Section 270A have been separately initiated for under-reporting of income. The assessment order was passed under Section 147 read with Section 144B of the Income Tax Act, 1961, involving an addition of income and disallowance of deduction under Section 35 of the Act.
SMS Pharmaceuticals Limited is currently reviewing the order and evaluating the next steps to be taken before the appropriate forum. The company stated that there will not be any material impact at this stage on its financial, operational, or other activities.
What to do with a filing like this
SMS Pharmaceuticals 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 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 SMS Pharmaceuticals Limited. Read the original for the full detail.