Alkem Laboratories Ltd has received an assessment order for the 2023-24 fiscal year from the Deputy Commissioner of Income Tax. The order pertains to the disallowance of certain deductions and adjustments regarding transfer pricing, totaling Rs. 333.38 crores. Importantly, the company faces no cash outflow due to the utilization of available MAT credit. Alkem plans to challenge the order, asserting that its legal and factual position remains strong.
Understanding the Tax Order
On April 13, 2026, tax authorities issued an assessment order concerning Alkem Laboratories for the 2023-24 assessment year. The order cites a partial disallowance of deductions previously claimed under section 80IE of the Income-tax Act, alongside specific adjustments related to transfer pricing. While the disputed tax amount reaches Rs. 333.38 crores, the company has confirmed there is no material impact on its current financial operations or cash flow.
Impact and Future Strategy
Because the company maintains adequate MAT credit, no immediate payment is required to settle the disputed amount. Alkem management has stated that they believe the tax authority’s claims are not tenable. The company is prepared to contest this order through the formal appeal process, confident that it possesses the necessary factual and legal grounds to defend its original tax filings.
Operations for the company remain unaffected by this administrative development, and the company continues to maintain its business momentum while the legal proceedings unfold.
Source: BSE
