Akums Drugs and Pharmaceuticals Limited and its subsidiary, Akumentis Healthcare Ltd., have received income tax assessment orders for the block period from April 1, 2018, to March 12, 2025. The tax demands, totaling Rs. 60.09 crore for the parent company and Rs. 73.66 crore for the subsidiary, arise from the disallowance of certain expenditures. The company maintains that these demands are not sustainable and intends to challenge the orders through the appropriate appellate channels.
Overview of Tax Assessment Orders
Akums Drugs and Pharmaceuticals Limited has announced the receipt of assessment orders under the Income Tax Act for the block period spanning April 1, 2018, to March 12, 2025. The tax authority issued these orders for both the parent company and its subsidiary, Akumentis Healthcare Ltd. (AHL), following an examination of company expenditures.
Details of Financial Demands
The Income Tax Department has raised specific tax demands due to the disallowance of various expenditures claimed by the entities under Section 37(1) of the Income Tax Act. The resulting financial impacts are as follows:
- Akums Drugs and Pharmaceuticals Limited: A demand of Rs. 60,09,22,342.
- Akumentis Healthcare Ltd.: A demand of Rs. 73,66,10,238.
Company Stance and Future Action
Management has completed an internal assessment of the orders and believes the demands are legally unsustainable and fully defendable based on the facts of the case. Consequently, the company does not anticipate any material financial impact arising from these assessments. Both the parent entity and its subsidiary have confirmed their intention to formally challenge these orders by filing appeals under the applicable laws to contest the disallowances.
Source: BSE
