JTEKT India Limited has received a show cause notice from the Income Tax Department regarding alleged unassessed transactions worth ₹1,149.2 crore (₹11,492 million) for the financial year 2018–19. The notice, issued under Section 148A(1) of the Income Tax Act, pertains to transactions recorded in the name of JTEKT Sona Automotive India Limited (JSAI), a former subsidiary that was merged into JTEKT India following a 2019 NCLT order.
According to the notice, the tax department observed business transactions recorded in the GST filings of JSAI including a turnover of ₹664.7 crore, purchases or supplies worth ₹484.3 crore, and foreign remittances and receipts of ₹2 crore. The department believes these transactions might have escaped proper assessment and has sought an explanation from the company.
JTEKT India clarified that it had prepared and audited consolidated financials for FY19 post-merger, and filed returns accordingly. The company said it would respond to the notice within the stipulated deadline and emphasized that the notice currently has no financial or operational impact, nor does it impose any penalties.
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