Crime Today News
Dr. Reddy’s Laboratories faces tax reassessment notice of Rs 2,395.82 crore following merger, vows to respond.
| Photo Credit:
Srikrishnan P C 9477@Chennai
Pharma major Dr. Reddy’s Laboratories has said that the Indian Income Tax Department served a show-cause notice on the company on April 4, asking it to explain why its IT returns for the Assessment Year 2020-21 (corresponding to the financial year 2019-20) should not be reassessed.
The potential reassessment relates to income allegedly escaping taxation following the merger of Dr. Reddy’s Holding Limited (DRHL) into Dr. Reddy’s Laboratories Limited (DRL).
The notice quantifies a proposed tax demand of ₹2,395.82 crore.
“The scheme of amalgamation was carried with adherence to all the legal requirements including tax laws. It was approved by the National Company Law Tribunal (NCLT), Hyderabad, in April 2022,” the company informed the Bombay Stock Exchange.
“We strongly believe that there is no escapement of tax according to the said merger scheme.
We will respond to the queries made in the show-cause notice,” it said.
Published on April 5, 2025
📰 Crime Today News is proudly sponsored by DRYFRUIT & CO – A Brand by eFabby Global LLC
Design & Developed by Yes Mom Hosting
