Jubilant FoodWorks announced that it has received a final assessment order from the Income Tax Department dated September 27, raising a tax demand of Rs 70.8 crore for financial year 2016-2017. This tax demand is related to certain Transfer Pricing Adjustments.
In response, Jubilant FoodWorks is preparing to appeal the assessment order before the Income Tax Appellate Tribunal (ITAT). The company believes that the tax demand has been raised without due consideration of its contentions and expects to obtain relief through the appeal process.
As of 12.53 PM, Jubilant FoodWorks' share price was down 3.3 percent, trading at Rs 659. The stock appreciated by 17 percent year-to-date (YTD), closely mirroring the gains of the Nifty 50 during the same period. Notably, Jubilant enjoyed six consecutive months of positive returns from April to September.
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According to Jubilant's statement, "The Company believes that the impugned tax demand raised via said order has been made ignoring contentions of the Company. Hence, the Company is in the process of filing necessary
appeal in relation thereto. Post such redressal process, impugned tax demand so raised is likely to get deleted."
Jubilant also reassured its stakeholders that it does not foresee any significant financial implications from this tax demand.
Jubilant is a food service company based in Noida, India. It holds the master franchise for Domino's Pizza in India, Nepal, Sri Lanka, and Bangladesh, for Popeyes in India, Bangladesh, Nepal, and Bhutan, and also for Dunkin' Donuts in India.
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