Shree Cement Issues Clarification After Receiving Final Tax Notice

6 Feb 2024 , 12:56 PM

Shree Cement said on February 5 that the Income Tax authorities had not requested a tax deposition, just hours after CNBC TV-18 claimed that the company had received a final notice demanding ₹4,000 Crore.

The cement manufacturer stated that it was asked to ‘sum-up and summarise its response on the inquiry being made’ by the IT department in a notice that it received from the taxation agency last month.

‘The aforementioned notice makes no mention of a tax deposition demand. The company said in an exchange filing that it would abide by the notification and was now developing a response.

Citing official sources, CNBC TV-18 had reported on January 5 that Shree Cement was demanded to pay ₹4,000 Crore, which included unpaid taxes, interest, and a penalty levied against the company for making false claims and deductions.

Following a survey action, the tax officers produced a report in which they discovered that Shree Cement had incorrectly claimed a deduction of ₹7,000 Crore for solid waste management. It further stated that the IT department was unable to locate any such utility at any of the company’s locations throughout the survey.

Notably, in June 2023, the IT department conducted a survey at five locations connected to Shree Cement.

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