Akums Drugs and Pharmaceuticals has reported that four of its wholly-owned subsidiaries have received income tax assessment orders for the period between April 1, 2018, and March 12, 2025. The tax department has raised specific demands related to the disallowance of expenditures under Section 37(1) of the Income Tax Act. The company maintains that these demands are not sustainable and plans to appeal the decisions.
Overview of Tax Assessment
Four wholly-owned subsidiaries of Akums Drugs and Pharmaceuticals Limited—Maxcure Nutravedics Limited, Pure and Cure Healthcare Private Limited, Malik Lifesciences Private Limited, and Nicholas Healthcare Limited—have received assessment orders from the Income Tax Department. These orders pertain to a block period spanning from April 1, 2018, to March 12, 2025.
Details of Demands
The tax authorities have issued demands primarily concerning the disallowance of various business expenditures under Section 37(1) of the Income Tax Act, 1961. The specific financial demands received by the subsidiaries are as follows:
- Maxcure Nutravedics Limited: Rs 15,23,84,730
- Pure and Cure Healthcare Private Limited: Rs 5,77,12,428
- Malik Lifesciences Private Limited: Rs 80,49,432
- Nicholas Healthcare Limited: Rs 44,97,058
Company Stance and Next Steps
The company has conducted an internal assessment regarding these orders. Based on this review, management does not expect any material financial impact on its operations. The company holds the position that the demands raised by the authorities are legally unsustainable and are defendable based on the facts of each case. Consequently, all four subsidiaries intend to file appeals against the respective orders under the appropriate legal frameworks.
Source: BSE
