Sanofi India Secures Relief as Tax Authority Drops Rs 72.71 Lakh Demand
Mumbai: Sanofi India Limited has received a favourable order from the Commissioner of Income Tax (Appeals)-49, Mumbai, resulting in the deletion of a tax demand amounting to Rs 72.71 lakh for Assessment Year 2019-20.
In a regulatory disclosure, the pharmaceutical company informed the stock exchanges that the appellate authority had accepted its submissions and dropped proceedings initiated under Section 201 of the Income-tax Act, 1961. The company received the order on July 2, 2026.
The matter arose after Sanofi India was treated as an “assessee in default” for alleged non-deduction of taxes on year-end provisions, leading to a demand of ₹72,71,510. The company subsequently challenged the order before the Commissioner of Income Tax (Appeals).
According to the company, the appellate authority accepted its contention that the corresponding amount had already been disallowed in its tax computation. Therefore, the company could not be treated as an assessee in default under Section 201(1) for the same amount and subjected to additional demand and interest.
Consequently, the Commissioner of Income Tax (Appeals) issued an order in favour of the company and dropped the proceedings under Section 201 for Assessment Year 2019-20.
Sanofi India further stated that the order will have no material impact on its financial, operational or other activities.
