ICICI Lombard General Insurance Co. received an income tax demand of Rs 1,388 crore on Thursday from the Office of the Assistant Commissioner of Income-Tax, Mumbai, according to an exchange filing on BSE.
The total income tax demand was for the amount of Rs 1,388.09 crore, which includes an interest of Rs 321 crore. The tax notice pertains to the assessment year 2021–22.
The assessing officer made addition to the total taxable income of the firm by making certain adjustments in the order, primarily on the account of:
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Disallowance of certain marketing and advertisement expenses as inadmissible under Section 37(1) of the Act.
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Disallowance of provision of claims incurred but not reported and claims incurred but not enough reported.
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Disallowance under Section 40(a)(ia) of the Act for non-deduction of TDS on certain expenses.
"These disallowances primarily relate to industry-wide issues," the filing said.
The company has decided to pursue an appeal with the appellate authorities or evaluate other legal options, according to the counsel of their tax advisers.
Shares of ICICI Lombard General Insurance Company closed 0.97% lower at Rs 2,238.15 apiece on the NSE, compared to a 0.14% decline in the NSE Nifty 50.
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