CreditAccess Grameen has announced that it has received a demand order from the Income Tax Department, seeking additional tax of Rs 46 crore for assessment year (AY) 2022-23.
“We hereby inform you that the company has received Demand Order from the Income Tax Department, Ministry of Finance, Government of India on March 19, 2024, seeking additional tax demand of Rs 46.03 crore for AY 2022-23 under Section 143(3) read with section 144B of the Income Tax Act, 1961,” the company stated in a regulatory filing.
Commenting on the demand order, CreditAccess Grameen said that it opines that the notice is based on incorrect facts and assumptions and that the management is confident of taking up this with the IT department explaining the full facts of the case.
“Based on the advice from tax experts, the company would be taking all necessary steps to take this to the logical conclusion and safeguard its interests. We would like to reiterate that the company has always maintained the highest standards of integrity, corporate governance, and disclosures in all areas of its operations including payment of taxes promptly and continues to remain committed to the same,” it said.
The microfinance firm maintained that there shall be no material impact of this on the financial or operation activities of the company as the “demand is factually incorrect and is not tenable in law”.
According to indirect tax experts, there could be flurry of tax notices in the months ahead, as the deadline for filing orders for mismatch in tax payment, wrongful availment of tax credits and discrepancies in tax returns filed for FY19 and FY20 lapses on April 30 and August 31, respectively. “There will be more tax notices as tax authorities scrutinise transactions and returns for the next two years,” say experts.
