Nandan Denim Limited has received an Assessment Order for assessment year 2020-21 from Deputy commissioner of income tax, Ahmedabad has issued an order & demand notice u/s 156 of the income tax act,1961 for Assessment year 2020-21. Notice of demand dated is 10 May, 2024. (Accessed on May 20, 2024 through Income Tax online portal).

Details of the violation(s)/contravention(s) committed or alleged to be committed: Demand notice for an amount of INR 36,739,244 has been issued for assessment u/s 143(3) and search & seizure u/s 132 of the income tax Act,1961 for the assessment year 2020-21. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: The assessment of Company selected for scrutiny assessment for Assessment Year 2020-21. During assessment proceeding, the company has furnished all details, explanation and information called for by the Assessing officer from time to time.

The assessing officer has completed assessment by estimating income based on certain alleged transactions by comparing the profits earned by the company with another peer companies. Further the assessing officer has also disallowed the claim of deduction u/s 80IA in respect of self-generated power. This issue has already been held in its favour by the Income Tax Tribunal in the earlier years.

There are more than fair chances that the addition made by AO would be deleted and /or substantially reduced at the first appellate level which the Company has already preferred. Further, the company also understands that the aforesaid event has no material impact on its operations.