The Income Tax Department has issued a demand of Rs 1,170 crore, inclusive of tax and interest, to listed mining business Hindustan Zinc for AY21, according to a stock market announcement on Tuesday.
The demand, issued by the Assessment Unit of the Income Tax Department's National Faceless Assessment Centre, is unlikely to have a significant financial impact, Hindustan Zinc stated. The department's tax claim was based on the same disallowances and additions imposed in prior years, for which the miner received favorable decisions from the Income Tax Appeal Tribunal.
"The demand raised by NFAC is based on the same disallowances and enhancements as previous years. The firm has already gotten favorable rulings from the Income Tax Appellate Tribunal on these same problems in previous years," the company stated.
Hindustan Zinc would submit an appeal and accompanying stay application with the Income Tax Appellate Tribunal against the assessment ruling within the timeframe specified, it added.
It expects for a good decision in this case, considering the success of past appeals on similar concerns. Last Monday, the NFAC slapped Hindustan Zinc with a notice demanding Rs 1,884 crore for the fiscal year 2014.
The firm stated that this demand emerged because the NFAC did not take into account the amount paid for pre-paid taxes/taxes paid under Regular Assessment by the company and allegedly committed clerical and mathematical mistakes in determining this demand.
