Shree Cement Receives Income Tax Demand of RS 261 Crore

Shree Cement has received an assessment order against the demand of Rs 261.88 crore from the Income Tax department.

The company has received assessment order on February 24 passed under section 143(3) of Income Tax Act, 1961, pertaining to AY 2021- 22, wherein certain additions/ disallowances have been made.

"Company has noticed prima facie errors i.e. 'mistake apparent from record', in the said order," Shree Cement said.

"The Company is in the process of filing an appeal against the disallowances made in the assessment order, as well as petition for rectification of the prima facie errors in the order. Looking to the precedence/ Orders of Appellate Authorities in our own cases and considering expected relief on petition for ratification of errors, the company expects that the entire demand to subside. As such, there is no impact on financial, operations or other activities of the company," the company said.

Shree Cement said it would avail recourse provided in Income Tax Statute against the demand of Rs 261.88 crore raised in the assessment order.

In an earlier regulatory filing on February 5, Shree Cement said the Company had earlier informed the Stock Exchanges about the survey conducted by the Income Tax Department.

"Company officials extended full cooperation to the I-T authorities. Subsequently, the Income Tax Department has sought the company's response to their queries in relation to the survey proceedings. The Company has duly responded to the same.

"In continuation to the said proceedings, a show-cause notice was issued in the month of January to the company asking the company to sum-up and summarise its response on the inquiry being made. There is no demand for tax deposition in the said notice. The company is in the process of preparing its response and would comply with the said notice," Shree Cement said.