Tax Assessment / Regulatory Action
Akums Drugs Receives Income Tax Assessment Orders Worth Over ₹133 Crore for FY2018–FY2025 Block Period
NSE
akums
BSE
544222
Akums Drugs and Pharmaceuticals Limited along with its subsidiary Akumentis Healthcare Limited has received assessment orders from the Income Tax Department under Section 158BC of the Income Tax Act, 1961 for the block period from April 1, 2018 to March 12, 2025. The total demand raised exceeds ₹133 crore, primarily related to disallowance of expenditures under Section 37(1) of the Income Tax Act. The company stated that it does not expect any material financial impact and plans to challenge the orders legally.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Assessment Orders from Income Tax Department
Type: Tax Assessment / Regulatory Action
Impact: Negative
Immediate Effect: The company and its subsidiary received tax assessment demands aggregating more than ₹133 crore from the Income Tax Department for the block assessment period spanning FY2018 to FY2025.
Key Metrics:
- Demand Raised on Akums Drugs & Pharmaceuticals Ltd: ₹60,09,22,342
- Demand Raised on Akumentis Healthcare Ltd: ₹73,66,10,238
- Combined Tax Demand: ₹133.75+ Crore
- Block Assessment Period: 01.04.2018 to 12.03.2025
- Relevant Income Tax Section: Section 158BC read with Section 37(1) of Income Tax Act, 1961
Highlight Metric:
- Key Highlight: Income Tax Department raised combined assessment demands exceeding ₹133 crore against Akums Drugs and its subsidiary for expenditure disallowances under Section 37(1).
What Happened ?
Akums Drugs and Pharmaceuticals Limited informed stock exchanges that both the company and its subsidiary, Akumentis Healthcare Limited (AHL), received assessment orders from the Income Tax Department under Section 158BC of the Income Tax Act, 1961. The assessment pertains to the block period beginning April 1, 2018 and ending March 12, 2025.
The assessment orders were issued by the Office of the Deputy Commissioner of Income Tax, Central Circle 1, New Delhi. The demands were raised mainly due to disallowance of various expenditures under Section 37(1) of the Income Tax Act.
Akums Drugs received a tax demand of ₹60.09 crore, while subsidiary Akumentis Healthcare received a separate demand of ₹73.66 crore.
The company clarified that based on its internal assessment, the demands are not legally sustainable and are defendable on facts and law. Akums stated that it does not foresee any material financial impact from these assessment orders and intends to file appeals under applicable legal provisions.
Key Details
Assessment Order & Regulatory Details:
- Assessment orders were received under Section 158BC of the Income Tax Act, 1961.
- Orders relate to the block assessment period from April 1, 2018 to March 12, 2025.
- Communication was received from:
- Office of Deputy Commissioner of Income Tax
- Central Circle 1
- New Delhi
- Demand against Akums Drugs:
- ₹60.09 crore
- Demand against Akumentis Healthcare:
- ₹73.66 crore
- Reason for demand:
- Disallowance of various expenditures under Section 37(1) of Income Tax Act, 1961.
- Orders dated:
- Akums Drugs: May 20, 2026
- Akumentis Healthcare: May 19, 2026
- Company stated no penalty or sanction has been imposed separately.
- Akums intends to pursue legal appeal against the assessment orders.
- Management believes the demands are legally tenable and defendable.
Note:
- The company emphasized that the disclosure should not be interpreted as admission of wrongdoing and believes the adjustments made by the tax authorities are not sustainable under law.
Risk Analysis
Summary:
- The tax assessment orders introduce regulatory and litigation-related uncertainty for the company and its subsidiary, although management has downplayed the potential financial impact.
Key Risks:
- Large tax demand exceeding ₹133 crore may create temporary investor concern.
- Potential litigation and prolonged appeals process could continue for multiple years.
- Unfavorable legal outcome may impact profitability and cash flows.
- Regulatory scrutiny may increase compliance-related oversight.
- Negative sentiment may affect near-term stock movement.
Worst Case Scenario:
- If appeals fail and the entire tax demand becomes payable, the company may face significant cash outflow along with possible interest liabilities, impacting profitability and balance sheet strength.
Risk Level: Medium
Company Commentary
- The company stated that the assessment demands are not sustainable under law.
- Management believes the adjustments made by the Income Tax Department are defendable on facts and legal grounds.
- Akums clarified that it does not expect any material financial impact from the assessment orders.
- The company confirmed it will file appeals against the orders under applicable laws.
- Akums stated that the disclosure is made purely in compliance with SEBI LODR regulations.
Official Exchange Filing: Akums Drugs and Pharmaceuticals Limited