Sure Financial institution receives Rs 2,209 crore demand discover from Earnings Tax Division

I-T discover to Sure Financial institution: Traders in Sure Financial institution shares might face volatility when the inventory market opens on Tuesday, because the financial institution has acquired a Rs 2,209 crore demand discover from the Earnings Tax Division for the evaluation 12 months 2019-20. In response to the financial institution’s regulatory submitting, the Earnings Tax Division had reopened the evaluation for this era in April 2023. The Nationwide Faceless Evaluation Unit handed a reassessment order on March 28, with out making any extra rejections or additions, successfully eradicating the grounds for reassessment. At the moment, Sure Financial institution’s inventory is buying and selling at Rs 16.85, having declined by 25 per cent over the previous six months. Market specialists anticipate that this tax discover may additional impression the inventory worth, doubtlessly main to a different decline.

No tax is due on financial institution

The financial institution mentioned the full revenue, which was assessed within the unique evaluation order handed beneath part 144 of the Earnings Tax Act, has remained unchanged within the reassessment order, and consequently, no demand ought to have been raised towards the financial institution. It, nevertheless, mentioned that regardless of this, the computation sheet and the discover of demand issued beneath part 156 of the Act elevate an revenue tax demand of Rs 2,209.17 crore, together with curiosity of Rs 243.02 crore, which prima facie seems to be “with none foundation”.

Subsequently, the financial institution believes that it has sufficient grounds to fairly substantiate its place on this matter and doesn’t anticipate any materials adversarial impression on its monetary, operation or different actions because of the mentioned order, it mentioned. The financial institution would pursue an enchantment and rectification proceedings towards the mentioned reassessment order beneath the relevant legislation, it added.

(With PTI inputs)

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