News Stocks Panacea Biotec Receives ₹10.23 Crore Income Tax Demand Order for Assessment Year 2016-17Panacea Biotec Receives ₹10.23 Crore Income Tax Demand Order for Assessment Year 2016-17
Panacea Biotec Limited received an income tax demand order of ₹10.23 crore for Assessment Year 2016-17 from the Deputy Commissioner of Income Tax, Delhi. The demand resulted from disallowances of certain expenditures under Section 37 of the Income Tax Act, allegedly due to incorrect categorization of expenses violating Medical Council of India regulations. The company considers the demand non-maintainable, citing revised tax filings showing no taxable income due to brought-forward losses, and plans to file rectification applications and appeals while expecting no significant impact on its operations.
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Panacea Biotec Limited has received an income tax demand order of ₹10.23 crore for Assessment Year 2016-17, the company disclosed in a regulatory filing on March 06, 2026. The demand was issued by the Office of the Deputy Commissioner of Income Tax, Central Circle 29, Delhi under Section 156 of the Income Tax Act, 1961.
Demand Order Details
The income tax demand stems from disallowances of certain expenditures made by the Assessing Officer. The company received the demand order dated March 01, 2026, which includes interest on account of additions made in the Assessment Order for Assessment Year 2016-17.
| Parameter | Details |
|---|---|
| Demand Amount | ₹10.23 crore |
| Assessment Year | 2016-17 |
| Order Date | March 01, 2026 |
| Receipt Date | March 06, 2026 |
| Issuing Authority | Deputy Commissioner of Income Tax, Central Circle 29, Delhi |
Nature of Violations
The tax demand arose from specific violations identified by the income tax authorities. Deductions were disallowed under Section 37 of the Income Tax Act by the Assessing Officer due to incorrect categorization of certain expenses. These expenses are alleged to be in violation of Medical Council of India regulations, leading to the substantial demand against the pharmaceutical company.
Company's Response and Legal Strategy
Panacea Biotec has strongly contested the income tax demand, describing it as non-maintainable. The company stated that the demand fails to account for its revised tax filings, which reflect no taxable income or tax liability due to the availability of brought-forward losses.
The company's planned legal recourse includes:
- Filing a rectification application with the income tax department
- Appealing before the relevant appellate authority
- Taking all necessary legal measures to contest the demand
Expected Impact on Operations
Despite the significant monetary value of the demand, Panacea Biotec does not anticipate any substantial impact on its financial, operational, or other business activities. The company's assessment suggests that the demand lacks merit based on its tax position and available legal remedies.
The disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding material developments affecting the company.
Historical Stock Returns for Panacea Biotec
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.08% | -4.67% | -13.86% | -21.03% | -7.42% | +63.37% |
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