Puravankara Limited has reported the receipt of demand notices from the Income Tax Department for the assessment years 2016-17 and 2017-18. The total tax demand amounts to ₹51.87 crore, comprising ₹39.34 crore and ₹12.53 crore respectively. The company plans to contest these claims by filing appeals with the Commissioner of Income Tax (Appeals), citing strong legal and factual grounds to support its position.
Overview of Tax Demands
On March 31, 2026, Puravankara Limited received formal demand notices under Section 156 of the Income Tax Act. These demands follow assessment orders for two separate financial periods: A.Y 2016-17, involving a claim of ₹39.34 crore, and A.Y 2017-18, involving ₹12.53 crore. The primary reasons cited for these demands include the disallowance of specific expenses and various notional additions.
Basis for Challenges
For A.Y 2017-18, the tax authorities also cited the denial of indexation benefits regarding the cost of acquisition of shares. The company has reviewed the assessment orders and maintains that it has strong legal and factual grounds to challenge these demands. Consequently, management is in the process of initiating formal appeals before the Commissioner of Income Tax (Appeals) within the prescribed regulatory timelines.
Operational Impact
Despite the financial nature of these tax demands, the company has confirmed that there is no impact on its current operations or other ongoing business activities. The company is currently evaluating the broader implications of these orders on its financial statements as it prepares to defend its position in the appellate process.
Source: BSE
