Sobha Ltd. receives demand notice of Rs.46cr from Income Tax Department

Prominent Bengaluru based Real Estate firm Sobha Ltd has recently received a demand notice of Rs.46 crore from the Income Tax Department. The realty giant stated that, it is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), against the orders within the prescribed timelines.

The notices have been issued by the Deputy Commissioner of Income Tax, Bengaluru. The notices are related to Assessment Year ( AY) 2016-17 and 2022-23. In a regulatory filing the company informed, “The Company has received demand notices under section 156 of the Income Tax Act, 1961 for Rs. 13.12 crore and Rs. 32.68 crore related to AY 2016-17 and AY 2022-23 respectively, due to disallowances of certain expenses and other additions.” 

It also added, "The Company has legal and factual grounds to substantiate its case. The Company is in the process of evaluating the implications of these orders on the financial statements. There is no impact on operations or other activities.”

Sobha said that, it is in the process of filing an appeal before the Commissioner of Income Tax (Appeals), against the said orders within the prescribed timelines. It further added, "The company has legal and factual grounds to substantiate its case. The company is in the process of evaluating the implications of these orders on the financial statements."

Sobha Ltd. is an internationally acclaimed real estate firm which was started in 1976 as an interior decoration firm in Oman by P.N.C. Menon. They started their journey as real estate firm from 1995.