Grasim Industries Obtains Rs 8,334 Crore Income Tax Claim, Real Estate News, ET RealEstate

NEW DELHI: Grasim Industries Ltd said on Friday that the income tax department charged the company Rs 8,334 crore in capital gains tax in respect of the sale of shares in the company. ‘a company of the group. Aditya Birla Group added that it would take “appropriate action” against the tax claim.

The Assistant Income Tax Commissioner (DCIT) made a request for the 2018-19 tax year, Grasim Industries said in a regulatory filing.

This is linked to the planned merger of Grasim Industries with Aditya Birla Nuvo and Aditya Birla Financial Services.

The company said it would “take appropriate action against said order which it believes is contrary to the spirit of tax laws.”

Previously, DCIT had requested a dividend distribution tax for the same transaction in 2019, which was suspended by the Bombay High Court.

DCIT also imposed a capital gains tax on the value of the shares, without considering that the shares were issued to shareholders in accordance with the plan of arrangement and that no consideration was received by the company which could be subject to tax, noted Grasim Industries.

“As a corollary to the previous ordinance, the DCIT valued the shares issued by the resulting company (Aditya Birla Capital Limited) at Rs 24,037 crore as consideration for the sale for the transfer of the company and added capital gains of Rs 22,772 crore to the results of the Company in the context of the control assessment of the AA 2018-19 and adopted the draft valuation order on September 30, 2021.

“Based on the draft ordinance, the demand for YY 2018-19 is estimated at Rs 8,334 crore, including interest and excluding any sanction proceedings,” the file said.

In September 2017, the Ahmedabad magistracy of the National Company Law Tribunal (NCLT) approved the merger of Aditya Birla Nuvo (ABNL) with Grasim Industries, followed by the listing of Aditya Birla Financial Services Ltd (ABFSL) .

Grasim Industries, flagship company of the Aditya Birla group, is a diversified player with a presence in all sectors.

It is one of the world’s leading producers of viscose staple fibers (VSF) and the largest player in chlor-alkali, flax and insulation in India.

Through its subsidiaries UltraTech Cement and Aditya Birla Capital, it is also the largest cement producer in India and a leading player in diversified financial services.

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