Yatharth Hospitals: Income Tax Proceedings Concluded, Appeals Planned
Yatharth Hospitals and its subsidiaries received final income tax assessment orders totaling ₹43.80 Crores in demands and ₹16.94 Crores in interest. The company plans to appeal these orders, confident of significant relief and reduction in demands, thus requiring no provision in financial statements.
The total demand and interest are significant, but the company's confidence in appellate relief and the decision not to make a provision suggests the impact might be manageable. However, the outcome of the appeals remains uncertain.
The company has received final assessment orders with demands and interest, which is a negative development. However, the company is confident of obtaining substantial relief in appellate proceedings and believes no provision is currently required, which mitigates the immediate negative impact.
Yatharth Hospital & Trauma Care Services Limited (YATHARTH) and its subsidiaries, AKS Medical & Research Centre Private Limited (AKS) and Ramraja Multispeciality Hospital & Trauma Centre Private Limited (Ramraja), have received final assessment orders from the Deputy Commissioner of Income Tax. The orders result in aggregate demands of ₹29.66 Crores plus ₹11.42 Crores in interest for YATHARTH for assessment years (AY) 2014-15 to 2024-25. For AKS, the demand is ₹8.50 Crores plus ₹2.48 Crores in interest for AY 2022-23 to 2024-25. Ramraja faces a demand of ₹5.64 Crores plus ₹2.04 Crores in interest for AY 2023-24. With these orders, the assessment proceedings for the mentioned years are concluded.
Following advice from external tax consultants, YATHARTH and its subsidiaries will file appeals before the CIT (Appeals) against these assessment orders. The company, based on its internal assessment, is confident of securing substantial relief during the appellate proceedings, which is expected to lead to a significant reduction in the demands. Consequently, the company believes no provision is currently required in its financial statements for this matter. This intimation will be available on the company's website under the investor section.
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