Tata Chemicals Ltd on Thursday (March 21) said it has received an order from the Income Tax Department imposing a penalty of ₹103.63 crore under Section 270A of the Income Tax Act, 1961.
The penalty primarily pertains to the disallowance of interest under Section 36(1)(iii) of the Act, Tata Chemicals said in a regulatory filing.
“We would like to inform you that the Company has received an Order from National Faceless Assessment Centre, Income Tax Department levying a penalty of ₹ 103,63,48,806/-, under Section 270A of the Income Tax Act, 1961 (Act) for, inter alia, disallowance of interest u/s 36(1)(iii) of the Act," the company said.
Tata Chemicals will appeal against the order before the National Faceless Appeal Centre, seeking a reversal of the penalty. "Based on the merits of the matter, prevailing law and the advice of the counsel, the company is planning to appeal against this order before the National Faceless Appeal Centre (appellate authorities) and reasonably expects favourable orders from the appellant authorities," Tata Chemicals said.
Shares of Tata Chemicals Ltd ended at ₹1,035.10, up by ₹3.20, or 0.31%, on the BSE.
