Metropolis Healthcare Faces Rs 24.46 Crore Income Tax Demand for AY 2023-24

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New Delhi, March 4: Metropolis Healthcare Ltd announced on Monday that it has received an income tax demand of Rs 24.46 crore from the income tax authority. The Assistant Commissioner of Income Tax, Mumbai, Income Tax Department (ACIT), raised the demand for assessment year (AY) 2023-24.

Demand Details

According to Metropolis Healthcare's regulatory filing, the actual demand for AY 2023-24 will amount to Rs 24.19 crore after adjusting a rectification of Rs 27 lakh pertaining to the same assessment year. The company clarified that for the Rs 27 lakh demand, tax plus interest, for AY 2023-24, an error occurred during the computation of tax, and ACIT did not grant credit for certain taxes already paid.

Rectification and Appeal

Metropolis Healthcare stated that it has filed an application for rectification and issuance of a rectification order due to TDS credit, advance tax, and self-assessment tax credits not being allowed. The ACIT has accepted the application and is in the process of rectifying it. The company intends to file an appropriate appeal before the Commissioner of Income Tax (CIT) against the assessment order.

Financial Impact

Based on legal advice, Metropolis Healthcare believes that the order will not have any immediate material financial impact as there is merit in the accounting principle applied by the company. However, as a prudent measure, the company has already made a provision of Rs 19.64 crores as of December 31, 2023, for the said assessment year out of the net tax demand of Rs 24.19 crore for AY 2023-24.

Metropolis Healthcare's response to the income tax demand demonstrates its commitment to addressing tax-related matters promptly and ensuring compliance with regulations. The company's proactive approach in seeking rectification and filing an appeal reflects its dedication to safeguarding its financial interests and maintaining transparency in its operations.