‘The company believes that the tax demand above is not maintainable, and it is in the process of preferring an appeal and rectification against the said order,’ Tata Consumer stated in the report.
Tax Demand Issued
Tata Consumer Products Ltd (TCPL) has been issued a substantial tax demand by the Income Tax department amounting to Rs 171.83 crore for the assessment year 2019-20.
This was revealed in a regulatory filing on June 29. The demand arises from certain additions and disallowances proposed by the assessing officer under sections 143(3) and 144C(13) of the Income-tax Act, 1961. The specified amount includes interest.
Company’s Response
TCPL has expressed its belief that the tax demand is not maintainable. The company is in the process of preparing an appeal and seeking rectification against the said order.
TCPL’s regulatory filing states, “The company believes that the aforementioned demand is not maintainable and it is in the process of preferring an appeal and rectification against the said order.”
Stock Market Reaction
Following the announcement, TCPL’s stock saw a positive movement. The stock price of the company closed at Rs 1,098.00 on the BSE, reflecting a 1.14 percent increase on Friday, June 29.
Financial Performance
In other financial news, Tata Consumer Products Ltd reported a notable decline in its consolidated net profit for the fourth quarter ending March 31, 2024.
The net profit dropped by 26.69 percent to Rs 212.26 crore, compared to Rs 289.56 crore in the same period the previous year. This decline was primarily due to exceptional costs related to amalgamations, acquisitions, asset write-downs, and fair value loss on financial instruments.
Revenue Growth
Despite the drop in net profit, the company’s consolidated revenue from operations showed a positive trend.
The revenue stood at Rs 3,926.94 crore for the quarter under review, compared to Rs 3,618.73 crore in the corresponding quarter of the previous year. This reflects the company’s ability to grow its operations and maintain revenue despite facing significant exceptional costs
.
Conclusion
TCPL is currently navigating the complexities of the tax demand while also dealing with fluctuating financial performance.
The company remains focused on appealing the tax demand and continuing to strengthen its market position through strategic growth and revenue generation.
