Sagility has received an order from the Income Tax Department, Government of India, resulting in a tax demand of ₹351.3 million (including interest) for the assessment year 2022-23. The company believes this demand is not maintainable and plans to appeal before the Income Tax Appellate Tribunal. This assessment order is not expected to have a material impact on the company’s financials or operations.
Income Tax Assessment
Sagility has received an assessment order under section 143(3) read with section 144C(13) read with section 144B of the Income Tax Act, 1961, from the Income Tax Department. The order pertains to the assessment year 2022-23.
Key Financial Impact
The order includes a tax demand of ₹351.3 million, which incorporates interest. The Income Tax Authority has made transfer pricing and other adjustments, increasing the returned income for the assessment year 2022-23 by ₹1,079.9 million.
Company Response
Sagility intends to challenge the demand and, based on advice from its tax advisors, will appeal the order before the Income Tax Appellate Tribunal within the specified timelines. The company does not anticipate any material impact on its financial performance or operational activities due to this assessment order.
Source: BSE