Deepak Fertilisers and Petrochemicals's subsidiary receives IT demand of Rs. 569 crores

The material subsidiary company of Deepak Fertilisers And Petrochemicals Corporation Limited i.e. Smartchem Technologies Limited (STL) has received the assessment and demand orders for the block period (Assessment Year 2013-2014 to Assessment Year 2019-2020) pursuant to Search Operation conducted by the Income Tax Department in November 2018 under the provisions of Sections 132 and 133A of the Income-tax Act, 1961, resulting into demand of Rs. 569 crores (including interest).

While the Management is in the process of detailed examination of the Assessment Order received, on a broad review of the said Order, as regards the legal perspective involved on the major contributor to the demands raised in the said Order, that of Depreciation on Goodwill and Intangibles assets and Interest thereon, the Company continues to rely on the strong legal advice based on Supreme Court decision and recent amendments in the Income Tax Act, 1961 and believes that the said Order is legally defendable. The Management is geared to take timely and appropriate steps to challenge the said Order.

Shares of Deepak Fertilizers and Petrochemicals Corporation Limited was last trading in BSE at Rs. 675.90 as compared to the previous close of Rs. 675.95. The total number of shares traded during the day was 68619 in over 5582 trades.

The stock hit an intraday high of Rs. 697.50 and intraday low of 672.85. The net turnover during the day was Rs. 46992765.00.

Source : Equity Bulls

Keywords

DeepakFertilizersandPetrochemicalsCorporation INE501A01019 Subsidiary ITDemand