By Admin 
Polycab Shares: The country’s largest wire company Polycab India has received a notice of Rs 327.45 crore from the Income Tax Department. Due to this, Polycab shares will be under pressure today. Polycab shares have made investors rich by giving multibagger returns of 170 percent in the last three years and 513 percent in the last five years.
On Wednesday, it closed at Rs 8283.95, falling 3.09 percent compared to the previous closing price of Rs 8548.40. During this period, 0.14 lakh shares of the company were sold, whose turnover was Rs 11.28 crore. With this the market cap of the company remained at Rs 1.24 lakh crore.
Why did you get the notice?
This notice was sent to the company because the Income Tax Department in its investigation found that the expenditure of about Rs 41.87 crore has been disallowed from the company’s income. That is, in order to pay less tax, the company had shown some of its expenses in the balance sheet, which the Income Tax Department has rejected considering it not justified.
The company has received this notice from the Deputy Commissioner of Income Tax, Mumbai for the assessment year 2024-25. The company says that there are calculation errors in this demand notice. According to the company, the actual disallowance was only Rs 41.87 crore, which has been increased to Rs 327.45 crore. After this news, a fall of 3-3.2 percent was seen in the shares of Polycab on Wednesday.
What did the company say?
The company will talk about filing a rectification application against this notice and appealing to higher authorities. The company hopes that after this appeal the demand notices will reduce significantly.
Polycab said, “The Income Tax Authority has made certain disallowances and additions totaling Rs 41.87 crore through an assessment order passed under Section 143(3) of the Income Tax Act, 1961. Pursuant to that order, a demand of Rs 327.45 crore has been made through a demand notice issued under Section 156 of the Act.”
Polycab further said, “The company in consultation with its tax advisors has found that due to certain computational/clerical errors in the demand assessment order, the additions made are more than what can be rectified under Section 154 of the Act, hence the company has initiated the process of filing an application for rectification before the Jurisdictional Assessing Officer.”
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