Jubilant Pharmova Limited has announced that its wholly-owned step-down subsidiary, Jubilant Generics Limited, received an order from the Income-tax department regarding FY 23. The order pertains to tax adjustments of Rs. 107.89 crores, primarily driven by transfer pricing issues. The company disputes the findings and intends to file an appeal with the Commissioner of Income Tax, expecting to secure relief from the relevant authorities without any material financial impact.
Tax Adjustment Order Details
Jubilant Generics Limited, a subsidiary of Jubilant Pharmova, received an official order on May 22, 2026, concerning the financial year 2023. The order includes tax adjustments totaling Rs. 107.89 crores, which the tax department has linked to transfer pricing considerations. Management at Jubilant Generics maintains that these adjustments ignore the company’s established facts and contentions.
Legal Strategy and Financial Impact
In response to the order, the company is preparing to file a formal appeal before the Commissioner of Income Tax (Appeals). Furthermore, a separate application has been submitted to the Advance Pricing Authority to address the matters covering the relevant year. Regarding the financial impact, the order notes a Rs. 37.70 crore reduction in deferred tax assets. However, the management remains confident that these adjustments will likely be deleted following the adjudication process and does not anticipate any material adverse financial implications.
Source: BSE
