Hindustan Zinc receives Rs 1,170-crore tax demand; firm to appeal notice

The Vedanta subsidiary said it will file an appeal against the order

Hindustan Zinc on July 30 received a tax demand notice of Rs 1,170 crore, including interest, from the Income Tax department for the assessment year 2020-21, the firm said in an exchange filing.

According to the company statement, the demand is based on identical disallowances and additions imposed in previous years. The firm pointed out that it has secured favourable orders from the Income Tax Appellate Tribunal on these same issues in earlier years.

The Vedanta subsidiary said it will file an appeal against the order.

“The company will file an appeal and corresponding stay application with the Income Tax Appellate Tribunal against the assessment order within the prescribed timelines,” the statement said.

It also added that it is confident that it will receive favourable order on its appeal and doesn’t see any impact on its financials.

“Given the favorable outcomes of previous appeals on identical issues, the Company is confident of a positive resolution in this case. As such, the Company does not anticipate a material financial impact from the current assessment order.”

On July 30, the firm’s stock ended 1.07 percent higher at Rs 640.5 on NSE.