Mastek has received a final assessment order from the Income Tax Department for the FY 2022-23 worth INR 1,23,58,26,194.
“The Company has received an Order u/s 143(3) read with section 144C(3) read with section 144B of the Income Tax Act 1961, from the Income Tax Department for the Financial Year 2022-23,” Mastek noted in an exchange filing.
Mastek disclosed that the final assessment order from the tax authorities include transfer pricing addition worth INR 90.95 crores under section 92CA(3) and addition worth INR 32.62 crores under domestic tax laws. The tax department has also initiated penalty proceedings under section 270A of the act.
Mastek said that the computation sheet contains certain mistakes apparent from the record, including computing tax liability at a higher rate, not allowing foreign tax credit, and failing to grant credit for advance tax paid by a subsidiary that was amalgamated with the company.
“The Company does not envisage any material financial implication at this stage as there are certain errors in the Computation Sheet annexed to the order,” said Mastek.
Mastek said that it intends to file its objections/response with the Income Tax Appellate Authorities within the prescribed timelines.
“In light of the above, we believe that there will be no impact on the financials, operations or other activities of the Company on account of the aforementioned order,” the company noted.
