Max Estates Limited received a Notice of Demand under Section 156 of the Income-Tax Act, 1961, from the Income Tax Department, according to the Company’s exchange filing.
The notice relates to the assessment year 2023-24, wherein a sum of ₹2.4 crore has been determined to be payable by the Company relating to the Tax Credit of Max Ventures and Industries Limited (MVIL), which merged into the Company effective July 31, 2023 (with the appointed date of the merger being April 1, 2022).
The demand represents the balance after considering all advance tax payments, TDS/TCS, and self-assessment tax already paid. It relates to the difference between prepaid taxes and the assessed tax liability.
“The aforesaid Tax Credits had not been allowed by the Assessing Officer and would be allowed post migration of the PAN of MVIL into the Company,” explained Max Estates.
The Company is set to challenge the order before an appropriate authority. “The Company intends to comply with the notice, and the matter is under review for further action, including the possibility of filing an appeal against the demand. We will keep informed of any material developments in this regard,” Company said.>
