Timken India has received an order from the Income Tax Department concerning the assessment year 2022-23. The IT Department has calculated a higher income, resulting in a demand notice of ₹74,76,70,348/-, inclusive of interest. The company believes the order is flawed and plans to appeal, anticipating no immediate financial impact.
Income Tax Assessment Order
Timken India has been notified of an order passed by the Income Tax Department, Assessment Unit, pertaining to the assessment year 2022-23. The order was issued under Section 143(3) read with Section 144C (13) read with section 144B of the Income Tax Act, 1961.
Details of the Order
The IT Department’s order relates to transactions with associated enterprises, specifically concerning the distribution segment of the company. The IT Department has disallowed the methods used by Timken India for determining the arm’s length price and adopted alternative methods. As a result, the IT Department has calculated a higher income for the assessment year 2022-23, by ₹89,08,07,881/- compared to the income reported by the company.
Financial Impact and Company Response
In connection with the above, the IT Department has issued a demand notice under Section 156 of the Act, requesting a payment of ₹74,76,70,348/-, which includes interest under sections 234A, 234B, and 234C of the Act. Timken India believes that the order and demand notice are erroneous and unsustainable. The company intends to file an appeal before the appropriate authority to have the order quashed or rectified. The company does not expect any immediate financial or monetary impact as a result of this order.
Source: BSE
