Grasim Industries gets Rs 8,334-crore income tax demand
- ByStartupStory | October 4, 2021
The Income Tax Department has sent Grasim Industries a demand for Rs 8,334 crore as capital gains tax with regard to the sale of shares in a company in the group. Aditya Birla Group firm said it would take “appropriate action” against the tax demand.
Grasim Industries has received a demand from the Deputy Commissioner of Income Tax (DCIT) for the assessment year 2018-19 which is related to the scheme of Grasim Industries’ merger with Aditya Birla Nuvo and Aditya Birla Financial Services.
DCIT had sought dividend distribution tax on the same deal earlier in 2019, but it was stayed by the Bombay High Court.
A capital gain tax has also been imposed by DCIT on shares, without regard to the fact that the shares were issued to the shareholders under a scheme of arrangement and the company received no consideration for the shares that could be taxed, Grasim Industries reported.
The flagship company of the Aditya Birla Group, Grasim Industries, is a diversified player across several sectors. It is a leading global producer of Viscose Staple Fibre (VSF) and the largest Chlor-Alkali, linen and insulators player in India.
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