New Delhi: PNB Housing Finance Ltd on Monday said it has received an income-tax order raising a demand of ₹1,079.21 crore for assessment years 2020–21 and 2019–20, and will pursue rectification and appellate remedies, the company told stock exchanges.
The order, passed by the Deputy Commissioner of Income Tax, Central Circle-14, Delhi, pertains to proceedings under sections 153C and 153A read with section 144 of the Income Tax Act, following a search conducted on a third party. Of the total demand, ₹913.35 crore relates to AY20–21 and ₹165.86 crore to AY19–20, PNB Housing said in its disclosure.
The housing finance company said the assessment involves disallowance of certain revenue expenses and deductions, but added that there are inadvertent errors in the order, including application of incorrect tax rates. It plans to file a rectification application under section 154 of the Income Tax Act before the tax authority.
PNB Housing also clarified that the order does not introduce fresh disallowances beyond those already identified in regular assessment proceedings. Appeals against those earlier disallowances are already pending before the Income Tax Appellate Tribunal, Delhi, it said.
Based on its assessment, the company said it is hopeful of a favourable outcome and does not reasonably expect the tax demand to have any material financial impact. Shares of PNB Housing Finance were in focus following the disclosure.