Tata Consumer Products Ltd announced on Saturday that they have received an income tax demand of Rs 171.83 crore for the assessment year 2019-20. The fast-moving consumer goods (FMCG) major disclosed this information in a stock exchange filing. They stated that the demand is not maintainable and they are actively pursuing an appeal and rectification against the order. Despite this, the Tata Group company reassured stakeholders that there will be no immediate impact on their financials, operations, or other activities due to this order.
In their filing, the company detailed that they had received an “Assessment Order dated June 27, 2024, under section 143(3) read with section 144C(13) of Income-tax Act, 1961, for the income tax return filed for the financial year 2019-20, wherein certain additions/ disallowances with respect to returned income, have been proposed by the assessing officer”. The company further explained that the “demand raised is Rs.171.83 crs (including interest)”. The stock of the company closed at Rs 1,098, up 1.14 per cent on the BSE.
In the fourth quarter ending March 31, Tata Consumer Products experienced a 19.3 per cent decline in net profit, reaching Rs 217 crore. However, the company’s revenue witnessed an 8.5 per cent increase during the same quarter, reaching Rs 3,927 crore, driven by strong performance in their India business.
