Hospital chain Krishna Institute of Medical Sciences Ltd (KIMS) on Tuesday (April 16) said its subsidiary SPANV Medisearch Lifesciences Private Ltd has received a demand notice under Section 156 of the Income Tax Act, 1961, for a sum of Rs.306.97 crore.
The notice pertains to the assessment year 2022-2023 and raises queries regarding various financial transactions, including the receipt of share capital, share premium, and repayment of unsecured loans.
According to the notice, SPANV inadvertently failed to submit explanations for the queries raised by the Income Tax Department for the said assessment year.
However, KIMS has assessed internally that the demand notice is not sustainable in law and is entirely defendable based on the facts. “Based on the internal assessment the listed entity does not expect to have any material financial impact, as the said demand notice is not sustainable in law and is wholly defendable on the facts,” KIMS said.
Additionally, it was clarified that SPANV was not a subsidiary of KIMS for the assessment year 2022-23. In response to the demand notice, SPANV intends to file an appeal against the assessment under Part A of Chapter XX of the Income-tax Act, 1961, to the National Faceless Appeal Centre (NFAC).
Source: CNBC TV18
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