SMS Pharma Faces Rs 7.19 Crore Tax Demand in Income Under-Reporting Case
Income Tax Officials Threatened During Search at Prominent Ludhiana Hospital
New Delhi: SMS Pharmaceuticals Limited has received an income tax demand notice of Rs 7.19 crore for the assessment year 2018-19, along with initiation of penalty proceedings for alleged under-reporting of income.
The notice has been issued by the Faceless Assessment Unit of the Income Tax Department under Section 156 of the Income Tax Act, 1961. The demand stems from an assessment order passed under Sections 147 and 144B, which includes addition of income and disallowance of deductions claimed under Section 35 of the Act.
According to the company, the communication was received on March 31, 2026. It is currently reviewing the order and evaluating the next course of action, including the possibility of challenging the demand before the appropriate forum.
The company further clarified that there is no immediate material impact on its financial, operational, or other business activities at this stage. Any financial implication will depend on the outcome of the legal proceedings and final determination of tax liability.
The disclosure has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates reporting of material regulatory developments.
SMS Pharmaceuticals stated that it will take necessary steps in accordance with applicable laws while closely monitoring further developments in the case.
