Sure Financial institution of Non-public Sector has obtained two new tax notices concurrently. In a single, a tax of Rs 244.20 crore has been demanded for evaluation yr 2016-17 and Rs 292.29 crore for evaluation yr 2017-18 within the second. Nevertheless, each these notices are related to the previous discover and the financial institution says that the tax demand being accomplished is baseless. The financial institution has informed the inventory markets about each notices. Sure Financial institution mentioned a few tax discover of Rs 244.20 crore in alternate submitting, ‘The financial institution obtained a passage order for the Evaluation 12 months 2016-17 in December 2018 underneath Part 143 (3) of the Earnings Tax Act, 1961. There have been some editions/dislants in it. The respective evaluation yr was topic to recession proceedings and after performing some additions, the recession order was handed underneath Part 147 in March 2022. The financial institution has appealed in opposition to each the primary degree appellate authority in opposition to each evaluation and recession orders. Within the response order made, the earnings tax report reported within the earnings tax return as an alternative of the ressked earnings and assessed earnings for calculation of tax on it. On this regard, on April 15, 2025, the Jurisdictional Assessing Officer (JAO) rectified the error and handed the rectification order and re -calculated the tax demand. Because of the demand discover issued underneath this order, computation sheet and part 156, a further tax demand of Rs 244.20 crore has been created, during which the advice of curiosity underneath Part 234A and 234B of the Earnings Tax Act has been decreased to way more with none concrete cause. Beneath part 143 (3) of 1961, a move evaluation order was obtained for the Evaluation 12 months 2017-18 in December 2019. There have been some editions/dislants in it. The respective evaluation yr was topic to recession proceedings and after performing some additions, the recession order was handed underneath Part 147 in March 2022. The financial institution has appealed in opposition to each the primary degree appellate authority in opposition to each evaluation and recession orders. Within the response order made, the earnings tax report reported within the earnings tax return as an alternative of the ressked earnings and assessed earnings for calculation of tax on it. On this regard, on April 15, 2025, the Jurisdictional Assessing Officer (JAO) rectified the error and handed the rectification order and re -calculated the tax demand. Afterward the identical day, the Centralized Processing Heart (CPC) additionally handed one other rectification order. In line with this order of CPC, a further tax demand of Rs 292.29 crore has been created, during which the advice of curiosity underneath Part 234A and 234B of the Earnings Tax Act has been decreased to way more with none concrete cause. JAO/CPC will file a Retipedation software on a right away foundation in opposition to JAO in opposition to the discover of Rs 244.20 crore and in opposition to the second discover as this tax demand appears baseless. Aside from this, the financial institution will comply with all different obtainable measures together with submitting an enchantment earlier than the primary degree appellate authority. Can the impression on the inventory? Sure Financial institution believes that he has ample factual and authorized foundation to correctly certify his place on this case. Sure Financial institution doesn’t assume that this order can have any opposed impact on the monetary, operation or different actions of the financial institution. On 16 April, the shares of Sure Financial institution additionally appears to have the identical that the inventory has not been affected as a result of new tax discover. Sure Financial institution’s share on BSE climbed 2 % to shut at Rs 17.87. The financial institution’s market cap is Rs 56000 crore. The inventory has come down 25 % within the final one yr. On the identical time, it has strengthened 10 % in just one month. Consultants imagine that Sure Financial institution shares will be held. On the identical time, new traders can embody it of their portfolio.
