Dabur India Ltd. has disclosed that it received an income tax re-assessment order demanding ₹110.33 crore for the financial year 2017-18.

The company maintains that part of the demand is due to an inadvertent error, as income already included in the original assessment for assessment year (AY) 2018-19 has been factored in again. Furthermore, ₹36.77 crore of the demand was raised without proper discussion in the order.

The company intends to challenge the demand by filing an appeal before the Commissioner of Income Tax (Appeals) or another appropriate forum. Dabur also plans to file a rectification petition under Section 154 to address discrepancies in the demand’s calculation.

The company believes the final financial impact will be limited, as it expects the demand to be significantly reduced by higher forums.

The Income Tax Authority alleges that Dabur made incorrect claims for tax deductions related to in-house Research and Development (R&D) and under Section 14A of the Income-tax Act, 1961.

Despite this, Dabur remains confident in its position. The stock closed at ₹497.60, down by 1.77% ahead of the announcement.

In a separate development, Mphasis Ltd. received a tax demand notice amounting to ₹232.37 crore earlier today. This notice, linked to TDS on overseas payments, contributed to a 2.27% drop in its share price.