United Foodbrands Limited Receives Tax Demand Notice for Assessment Year 2023-24
United Foodbrands Limited, formerly known as Barbeque-Nation Hospitality Limited, has received an Assessment Order and Notice of Demand from the Deputy Commissioner of Income Tax, Bengaluru. The notice, received on May 31, 2026, relates to the Assessment Year 2023-24 and centers on a transfer pricing adjustment.The assessment conducted under Section 143(3) read with Section 144C(3) resulted in an addition of ₹2.78 crores to the company's total income. This addition arises from a transfer pricing adjustment made under Section 92CA(3) of the Income Tax Act, 1961, concerning royalty received from Associated Enterprises.
The accompanying Notice of Demand requires the company to pay income tax and interest thereon, aggregating to ₹8.63 crores.
A detailed breakdown of the financial implications is provided below:
| Financial Component | Amount (Crores) | Details |
|---|---|---|
| Addition to Total Income | ₹2.78 | Due to transfer pricing adjustment (Section 92CA(3)) |
| Total Demand (Tax and Interest) | ₹8.63 | Requested payment from the Deputy Commissioner |
| Carry Forward Losses | ₹28.30 | Amount cited by United Foodbrands Limited, which the company argues was not given credit |
United Foodbrands Limited stated that the demanded amount is inaccurate because the issuing officer did not give credit for carry forward losses totaling ₹28.30 crores. The company believes that, based on these grounds, it is not liable to pay the demanded income tax and interest.
In response to the communication, United Foodbrands Limited confirmed that it is in the process of filing an appeal against the addition. Furthermore, the company has submitted an application for rectification of the order and demand notice.
UFBL Stock Price Movement
United Foodbrands Limited shares shed 3.28% today, settling at ₹479.15 in post-market trading. Despite hitting its 52-week high of ₹516, the stock finished the day with heavy volume, trading 177,889 shares.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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