Mumbai: The Mumbai based drug maker Cipla all set to launch a new obesity drug was slapped with Rs 774 crore Income Tax demand notice citing additional taxes for rule violations including short deductions, weighted deductions and disallowance of expenses. The Rs 773.44 crore tax demand for assessment years 2015-16 to 2022-23 excludes any tax refunds.
The pharma major in regulatory filings confirmed the Income Tax demand and plans to appeal against the tax order. “The tax demands by the Income Tax authority are not applicable under the law,” said Cipla in a statement.
The taxmen cited rule violations of short deductions wherein the drug maker deducted less tax than the rate mentioned in the provisions and weighted deductions allowed for companies to invest in the development of knowledge and research capabilities while disallowing expenses incurred for business operations.
