Life Insurance Corporation(LIC) has received orders from the Income Tax authorities concerning Income Tax demands issued by the Assistant Commissioner of Income Tax in Mumbai. The Corporation intends to file an appeal before the Commissioner (Appeals), Mumbai, within the prescribed timelines to address these orders.
The first demand order amounts to Rs. 2133.67 crore. This stems from the Income Tax Department’s issuance of an intimation for a refund of Rs. 25,464.46 Crore in compliance with the order of ITAT (Income Tax Appellate Tribunal). The ITAT had directed the assessing officer to reevaluate the factual matrix and utilization of surplus, particularly regarding the disallowance/addition on account of interim bonus made in the assessment order. Upon reconsideration, the Assessing Officer disallowed the same, resulting in a tax effect of Rs. 2133.67 Crore.
The second demand order is for Rs. 1,395.08 Crore. Similar to the first, it relates to the Assessing Officer’s reconsideration of the disallowance/addition on account of interim bonus, following the ITAT’s directive. The Assessing Officer disallowed the amount, leading to the issuance of a demand notice for Rs. 1395.08 Crore. The Corporation aims to address these demands through the prescribed legal procedures.
LIC has emphasized that there will be no material impact on its financials, operations, or other activities.
