Sundaram Brake Linings Ltd, manufacturers of TVS brake linings and clutch facings, informed the exchanges about the settlement of the company's dispute with the Income Tax dept.
The Company informed that it had an outstanding dispute with Income Tax department wilh respect to extraordinary expenditure which was disallowed after reopening of income tax assessments for Assessment Years (AY) 2009-10 to 2012-13. The Company, however, received favorable orders from the Commissioner of lncome Tax (Appeals) on the appeals filed by the Company. And the lncome Tax Appellate Tribunal also confirmed me decision of the Commissioner on the appeals filed by the lncome Tax dept.
Subsequently, the lncome Tax Department filed appeals in the Madras High Court which are pending to be listed and heard.
With a view to bring to closure the pending dispute once and for all, the Company e-iled necessary forms towards settlement of the above tax dispute under Direct Tax Vivad Se Vishwas Act, 2020 on March 23,2020.
Based on the form-3 received from the Principal Commissioner of lncome Tax, Chennai - 3, certifying the amounts payable @ 50% of the tax liability due to the above disallowance for AY's 2008-09 to 2012-13 as Rs6.32cr, the Company said that it has effected the payment the amount on December 2, 2020
.
The lncome Tax department has, therefore, added the company in a regulatory filing, passed Orders for full and final settlement of tax dispute for the above AY's under Direct Tax Vivad Se Vishwas Act, 2020 in Form-S's on December 7, 2020. The appeals pending before High Court, Chennai will also be withdrawn by the lT Department.
"The Company will reverse in the FY 2021 the excess provision of Rs4.22cr out of the lT llability for Rs10.54cr created in the books of accounts after adjusting the payment of Rs6.32cr paid under Vivad-se-Vishwas scheme," Sundaram Brake Linings further added.
The company was trading at Rs295.10 up by 0.72% on the BSE, at around 10.46am.