ICICI Lombard Gets Rs 1,388-Crore Income Tax Demand
By: Admin | September 30, 2024 | Categories: Income Tax News | 4 Min Read
ICICI Lombard General Insurance Co. has received an income tax demand of ₹1,388 crore from the Assistant Commissioner of Income-Tax, Mumbai. The notice, which includes ₹321 crore in interest, relates to the Assessment Year 2021-22.
The tax authorities made adjustments to the company’s taxable income, citing the following disallowances:
- Marketing and advertisement expenses deemed inadmissible under Section 37(1) of the Income Tax Act.
- Provision for claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER).
- Disallowance under Section 40(a)(ia) for non-deduction of TDS on certain expenses.
These disallowances are reportedly part of industry-wide issues faced by many companies. ICICI Lombard plans to challenge the demand by appealing to the appellate authorities and considering other legal options.
The company’s shares dropped 0.97% to ₹2,238.15 on the NSE, while the NSE Nifty 50 index saw a modest decline of 0.14%.
Stay tuned for further updates on this case as the company moves forward with legal proceedings.
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