Shriram Properties Hit with Rs 446.79 Crore Tax Penalty

3 Apr 2024 , 12:40 PM

The real estate company Shriram Properties Ltd (SPL) announced on Tuesday, April 2, that the office of the Deputy Commissioner of Income Tax, Central Circle 1 (4) Chennai, has issued a ₹446.79 Crore penalty notice to its subsidiary, Shriram Properties and Infrastructure Private Ltd.

According to a stock exchange statement, the penalty order is connected to income tax proceedings for FY18 under Section 153C, regarding the sale of shares in one of its subsidiaries, Shriram Properties and Infrastructure Private.

The penalty decision is not maintainable because it pertains to a tax claim that was already being contested before the Madras High Court, according to legal advice the company has received. On July 23, the high court issued a temporary injunction instructing the respondent to preserve the status quo in relation to any upcoming actions in this regard.

Only the punishment amount has been quantified in the order. As directed by its legal counsel, Shriram Properties plans to contest the penalty ruling before higher courts or authorities within the allotted time frame.

As a result, our legal counsel has advised us that the department erred in approving the order in defiance of the High Court’s directive. Within the allotted time, the company would file a challenge against the aforementioned order with higher courts or authorities, said Shriram Properties.

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