income tax: Maruti Suzuki hit with Rs 2,159 crore Income Tax Draft Assessment Order

India automobile major Maruti Suzuki on Tuesday received a draft assessment order from the Income Tax department for FY 2019-20 amounting to Rs 2,159 crore.

In an exchange filing, the manufacturer said that “certain additions/disallowances amounting to Rs 21,597 million with respect to returned income (the income disclosed by the Company in its Income Tax return) have been proposed.”

Maruti Suzuki said that it planned to challenge the October 3 order and that business would not be affected by it.

“The company will file its objections before the Dispute Resolution Panel,” the exchange filing said, adding that,”there is no impact on financial, operation or other activities of the company due to this order.”

The IT order follows a September 29 show cause notice from the Goods & Services Tax authorities. The show cause notice was issued for proposing to demand interest and impose a penalty; besides, appropriating tax already paid amounted to Rs 139.3 crore, according to an exchange filing from the company.

“The company will file a reply to the Show Cause Notice before the Adjudicating Authority,” Maruti Suzuki said in a filing, at that time. The company’s shares closed at Rs 10,327 apiece, down 2.37% from its previous close of Rs 10,610.60 on September 29.

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