The New India Assurance Company Ltd. announced that the Income Tax Department has issued an Assessment Order under Section 143(3) for the Assessment Year AY 2023-24. This order results in an income tax demand computed at Rs. 1,89,37,08,470/-. The company plans to challenge this order by filing an appeal before the National Faceless Appeal Centre (NFAC) or pursuing other available legal remedies.
Income Tax Assessment Order Received
The New India Assurance Company Ltd. has formally informed the stock exchanges regarding an assessment order received from the Income Tax Department concerning the Assessment Year AY 2023-24. The details of the order, passed under Section 143(3) of the Income Tax Act, 1961, were communicated on March 24, 2026.
Computed Tax Demand Details
The primary impact of the assessment order is the computation of a specific income tax demand:
- Income Tax Demand: Rs. 1,89,37,08,470/- (One hundred eighty-nine crore, thirty-seven lakh, eight thousand, four hundred seventy rupees).
The Annexure clarifies that this demand arises from the Disallowances of certain expenses as per the order passed.
Company Response and Contingent Liability
The management of the company has decided to contest the decision. The company intends to pursue an appeal before the National Faceless Appeal Centre (NFAC) or utilize other legal options available against the passed order.
In terms of financial reporting, the impact of this order will be reflected as a contingent liability in the financial statements of the company, pending the outcome of the appeal process.
Source: BSE
