Alkem Laboratories Receives Rs 333.38 Crore Tax Demand for AY 2023-24, Plans to Appeal
Alkem Laboratories Limited, a top-five Indian pharmaceutical company specialising in generic and speciality drugs, recently issued a disclosure to the stock exchanges, i.e., BSE Ltd and NSE Ltd, regarding receipt of a demand order.
Backstory of the case
The company stated that for Assessment Year 2023-24, the Income Tax Authority passed an order on 13th April 2026 under Sections 143(3) read with 144C(3) of the Income Tax Act, 1961. In this order, the Authority disallowed a part of the deduction claimed by the Company under Section 80IE and also made a transfer pricing adjustment.
As a result, a tax demand of Rs. 333.38 crores has been raised and is currently under dispute. However, the Company is not required to make any payment against this demand as it has sufficient MAT credit available for adjustment.
Key details of the case
| Particular | Details |
| Issuing Authority | Deputy Commissioner of Income Tax, Central Circle 8(1), Mumbai (“IT Authority”) |
| Tax Amount | Rs 333.38 Crores |
| Date of receipt | 24th April, 2026 |
| Financial Impact | Nil |
| Details of Violation | Disallowance of part of the deduction claimed u/s 80IE of the Income-tax Act, 1961 and addition on account of transfer pricing adjustments. |
| Assessment Year | 2023-24 |
Company’s Response
The Company believes that the above order is not valid and that it has strong facts and legal reasons to support its case. The Company plans to file an appeal against this order in accordance with the applicable laws.
Company’s Disclosure
The company filed the above disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR Regulations”).
