Shares of Alkem Laboratories came off the day's low after the company issued a clarification, denying allegations of tax evasion.
At 2.52 pm, shares of Alkem Labs were trading at Rs 5,042 on the NSE, off its day's low of Rs 4,659.00.
The drugmaker's shares had nosedived earlier in the session on reports that the Income Tax Department was investigating into substantial tax evasion by the company.
India Today had reported, quoting sources, that the Income Tax Department has discovered that Alkem Laboratories allegedly made bogus and excessive deductions for its manufacturing units in Sikkim.
The purported value of such deductions is claimed to exceed Rs 1,000 crore. Numerous deductions were reportedly claimed under various special sections like 80-IC, according to sources within the firm.
Further investigations by the Income Tax Department revealed that Alkem Laboratories had been making payments to doctors and medical practitioners in exchange for prescriptions of their company-manufactured drugs. The investigation period revealed payments totaling hundreds of crores made to doctors by Alkem Laboratories. Sources also suggest that the probe findings may result in significant penalties for Alkem Laboratories.
The company, however, clarified that it remains committed to compliance and transparency, and had fully cooperated with the Tax Department officials during an earlier survey in 2023.
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Last September, the Income Tax Department had initiated surveys on Alkem Laboratories' offices and premises following intelligence indicating significant tax evasion.
Subsequent to the investigation, statements of relevant officials were recorded and balance sheets were scrutized by the Income Tax Department. The company issued a statement on Feb 26 reaffirming that it had received certain queries subsequently from the IT department earlier, which have been addressed.
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