Mankind Pharma Faces ₹111.68 Crore Tax Demand, Plans to Appeal

28 Feb 2025 , 11:13 PM

The Income Tax Department has demanded ₹ 111.68 crore from Mankind Pharma Ltd for the Assessment Year 2021-22 (AY 2021-22).

The demand order dated February 25, 2025, was issued by the Deputy Commissioner of Income Tax, Central Circle 29, New Delhi, and sent to the company on February 27, 2025, through the IT portal. The additional tax demand, together with interest, has been issued under Section 143(3) read with Section 144C(3) of the Income-tax Act, 1961.

The tax adjustments pertain to Section 80IC/80IE, which involves deductions for businesses in special economic zones, and a disallowance of certain expenditures under Section 37(1) of the Act.

Mankind Pharma claims that it opposes this order, as it believes the demand is not legally justified and it has strong legal and factual grounds to contest the order. The company does not expect this tax notice to have a material impact on its financial or operating results. Mankind Pharma plans to appeal against the order under the applicable laws and will pursue all necessary legal avenues to challenge the assessment.