IFCI gets Rs 13.64 crore additional tax demand for AY20 says no material impact on business

New Delhi: IFCI Limited on Tuesday informed stock exchanges that the Income Tax Department has raised an additional tax demand of Rs 13.64 crore for Assessment Year 2019 20 following a rectification order under the Income Tax Act.

In a regulatory filing the company said the order was issued under Section 154 read with Section 143 sub section 3 of the Income Tax Act 1961 by the Assistant Commissioner of Income Tax. The demand has been raised due to reduction in brought forward losses in the income computation.

IFCI said that the assessment order for AY20 is already under challenge before the Commissioner of Income Tax Appeals and the company has obtained a stay against the existing demand. It is also filing an application to seek stay of the additional demand.

The government owned financial institution added that it has sufficient MAT credit available to set off the outstanding demand and therefore does not expect any material impact on its financials or operations.

The company assured investors that business activities will remain unaffected and the matter is being handled through appropriate legal channels.

Shares of IFCI were in focus after the announcement as investors tracked further developments on the tax matter.