Par Drugs and Chemicals Limited Receives Favorable Tax Order, Demand Reduced to Nil
Par Drugs and Chemicals Limited has secured a rectification order under Section 154 of the Income Tax Act, 1961, following its appeal against an earlier Intimation Order. The department successfully deleted certain additions and disallowances that had been made to the company’s taxable income, resulting in the tax demand being computed as Nil.The company filed a rectification application concerning the Intimation Order received from the Income Tax Department. This original intimation order under Section 143(1) of the Income Tax Act, 1961, had included additions and disallowances totaling Rs. 58,78,360/- to the company’s taxable income. This situation initially led to a tax demand of Rs. 14,79,466/-, along with interest amounting to Rs. 5,29,563/, aggregating to Rs. 20,09,030/.
The Income Tax Department has since passed the order under Section 154, deleting these additions and disallowances. The rectification process followed the receipt of an email on June 9, 2026.
The initial discrepancy arose because amounts related to CSR expenditure (Rs. 32,00,000/-) and provision for gratuity (Rs. 26,78,360/-) had been added to the taxable income. However, upon internal review, both of these amounts had already been accounted for by being added back while computing the company’s taxable income. The error was determined to be an inadvertent clerical mistake committed during the filing of the Income Tax Return (ITR), where the said amounts were incorrectly disclosed or disallowed under the wrong column or serial number in the ITR.
Key financial details concerning the rectification are summarized below:
| Particular | Original Addition/Disallowance Amount | Resulting Tax Demand | Outcome after Rectification Order |
|---|---|---|---|
| Additions related to CSR and Gratuity Provision | Rs. 58,78,360/- (Aggregate) | Rs. 14,79,466/– (Tax Demand) | NIL |
| Total Interest Due | Rs. 5,29,563/- |
The rectification order confirms that the tax demand has been recomputed as Nil. Consequently, there is no quantifiable impact on the financial, operational, or other activities of Par Drugs and Chemicals Limited as of the date of this resolution.
PAR Stock Price Movement
Today, Par Drugs And Chemicals Limited shares rallied, closing at ₹87.81 after gaining 2.98%. The stock traded within a range of ₹85.15 to ₹90.65, with 2,962 shares changing hands 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.
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