ICICI Lombard General Insurance Co. has been served an income tax demand of ₹1,388.09 crore, including ₹321 crore in interest, by the Office of the Assistant Commissioner of Income-Tax, Mumbai. The tax notice pertains to the assessment year 2021-22.
According to an exchange filing on the BSE, the demand arose from adjustments made by the assessing officer, which resulted in an increase in the company's taxable income. Key disallowances included:
- Marketing and advertisement expenses deemed inadmissible under Section 37(1) of the Income Tax Act.
- Provisions for claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER).
- Disallowance under Section 40(a)(ia) for non-deduction of TDS on specific expenses.
The company noted that these disallowances are related to "industry-wide issues" and plans to appeal the order or explore other legal options, as advised by its tax counsel.
Following the news, ICICI Lombard's shares closed 0.97% lower at ₹2,238.15 on the NSE, against a 0.14% decline in the Nifty 50.
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