Mphasis Ltd. Receives Income Tax Assessment Order
Mphasis Limited announced that it received an Assessment Order under Section 143(3) read with Section 144B and a Notice of Demand under Section 156 of the Income-Tax Act, 1961, on March 25, 2026. The order pertains to Assessment Year 2023-24.The assessment order stemmed from the selection of the Company's case for scrutiny under Section 143 of the Income Tax Act, 1961. The order details variations in income reported in the Company’s return of income and as assessed by the assessing officer.
The Income Tax Department’s Assessment Unit issued the communication. The total amount of the notice of demand is Rs. 2286.86 crores.
According to management, the financial impact of the order is not expected to be material. The proposed variations in income are recurring from previous assessment years and currently under review by the Supreme Court, with favorable precedents from jurisdictional High Courts. The company intends to file a Rectification Petition shortly to address certain computation errors.
| Sl. No. | Particulars | Details |
|---|---|---|
| 2 | Type of communication received | Assessment Order under Section 143(3) read with Section 144B along with Notice of demand of Rs. 2286.86 crores under Section 156 of the Income-Tax Act, 1961. |
| 6 | Period for which communication would be applicable, if stated | Assessment Year 2023-24. |
| 7 | Expected financial implications on the listed company, if any | Management is of the view that there is no material financial impact on the Company. |
The company plans to file a rectification petition and is evaluating legal remedies and plans to file an appeal against the assessment order. Mphasis believes it has a strong case and anticipates a favorable outcome at the appellate stage.
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