Blitz Bureau
NEW DELHI: Hindustan Unilever (HUL) has received an income tax assessment order along with a demand notice of Rs 1,559.69 crore for the financial year 2021-22, the company disclosed in a regulatory filing on January 8.
As per the company’s filing with the exchanges, the order was issued by the Assistant Commissioner of Income Tax, Central Circle 5 (2), Mumbai. It also added that this notice comes under Section 143 (3) read with Section 144C (13) of the Income Tax Act, 1961.
The demand notice has been raised under Section 156 of the Act and pertains to the assessment year 2022–23. HUL said it received the communication on 7 January.
Similar adjustments as previous year
According to the company, the tax authorities have made transfer pricing adjustments relating to payments made to related parties, including a challenge to the valuation of such payments. In addition, corporate tax adjustments have been proposed, largely linked to disallowances in the nature of depreciation claimed by the company.
HUL noted that the nature of these adjustments is similar to those made for the previous financial year, indicating continuity in the tax department’s approach rather than a new area of contention.
No material impact on operations
Despite the size of the demand, the company said the assessment order is not expected to have any material impact on its financial position, operations, or other activities. The disclosure clarified that no penalties, restrictions, or sanctions have been imposed under the order, and no non-compliances or aberrations have been identified by the authority.
Company to contest order
HUL said it will file the necessary appeal before the appropriate appellate authority within the permissible timeline prescribed under law. The company did not provide a timeline for resolution but indicated it would pursue remedies available under the Income Tax Act.
The disclosure was signed by Radhika Shah, company secretary and compliance officer of Hindustan Unilever Ltd, and filed with both the BSE and the NSE under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.