Allcargo Logistics Ltd Receives Income Tax Demand of ₹5.61 Crore
Allcargo Logistics Limited has received a Notice of Demand from the Income Tax Department regarding an assessment for the block period spanning April 1, 2018, to April 5, 2025. The notice was issued under Section 154 of the Income Tax Act, 1961, and relates to an assessment order passed under Section 158BC of the same Act.The total demand raised against the company amounts to ₹5,61,21,030. The authority cited the non-disclosure of income as the basis for this action.
Basis of Tax Demand
According to the details provided in the notice, the demand arises from specific notional additions to the total income:| Category | Details |
|---|---|
| Transfer Pricing Adjustments | Rs. 7.05 cr for AY 2023-24 and AY 2024-25 regarding corporate guarantees provided for international subsidiaries |
| Salary Expenditure Disallowance | 10% of total expenditure attributable to services rendered for foreign subsidiaries |
The company stated that these adjustments do not impact its operations, business continuity, or underlying financial position. No penalties or sanctions were imposed as a result of this communication.
Company Response and Outlook
Allcargo Logistics Limited is currently examining the assessment order and intends to evaluate legal remedies, which may include filing an appeal. The company maintains that it possesses adequate grounds to contest the demand. Management does not anticipate any material adverse impact on its financial position due to this specific notice.ALLCARGO Stock Price Movement
Allcargo Logistics Limited shares today slipped by 1.25% to settle at ₹7.92. The stock traded with a volume of 3.27 million shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.