New Delhi: IFCI Limited, a government-owned financial institution, has informed stock exchanges that the Income Tax Department has raised an additional tax demand of Rs 13.64 crore for Assessment Year (AY) 2019-20 following a rectification order under the Income Tax Act. The company has stated that this demand is not expected to have any material impact on its financial performance or business operations.
Tax Demand Raised Under Section 154
According to the regulatory filing, the order has been issued under Section 154 read with Section 143(3) of the Income Tax Act, 1961, by the Assistant Commissioner of Income Tax. The additional demand arises due to a reduction in brought forward losses in the computation of income for AY 2019-20.
IFCI Seeks Stay on Additional Demand
IFCI noted that the assessment order for AY 2019-20 is already under challenge before the Commissioner of Income Tax Appeals, and the company has obtained a stay on the existing demand. The institution is also in the process of filing an application to seek a stay on the newly raised additional demand.
MAT Credit to Offset Outstanding Tax Liability
The company added that it has sufficient Minimum Alternate Tax (MAT) credit available to offset the outstanding demand, and therefore, it does not anticipate any significant effect on its finances or operations.
Business Operations Remain Unaffected
IFCI assured investors that its ongoing business activities will continue as usual, and the matter is being handled through appropriate legal and regulatory channels. Shares of IFCI were actively tracked by investors following the announcement, reflecting market interest in the outcome of the tax proceedings.
About IFCI Limited
IFCI Limited, established in 1948, is one of India’s oldest and premier financial institutions. It primarily provides long-term finance to large and medium-sized industrial projects, as well as advisory and financial services to corporate clients. As a government-owned entity, it plays a key role in promoting industrial growth and investment in India.
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