On March 28, 2025, Metropolis Healthcare Limited received a significant update regarding its ongoing appeal against the Income Tax demand for the assessment years (AY) 2014-15 to 2023-24. This comes as part of the company’s continued efforts to resolve the income tax matters that were previously raised by the Assistant Commissioner of Income Tax, Mumbai (ACIT).

Background of the Case

Earlier, in February and March 2024, Metropolis Healthcare disclosed that an Income Tax demand of INR 39.80 Crore was raised for the AY 2014-15 to AY 2023-24 period, following the ACIT's assessment orders. The original demand was for INR 73.07 Crore, but after factoring in rectifications and refunds, the final demand was INR 39.80 Crore. In response to this, the company took a prudential provision of INR 19.64 Crore for AY 2023-24 to account for any possible liabilities.

Appellate Order Details

Metropolis Healthcare, in its disclosure to the BSE and NSE, revealed that it had filed an appeal before the Commissioner of Income Tax (Appeals), Mumbai (CIT(A)), challenging the assessment orders. On March 28, 2025, the company received the Appellate Order under Section 250 of the Income Tax Act, 1961. The CIT(A) has accepted and allowed the majority of the grounds of appeal in favor of the company.

This decision has been described as favorable for the company, though the appeal effect order from the Income Tax Department is still awaited. The financial impact of this outcome will only be known once the company receives the final order from the department.

Impact and Next Steps

• Expected Financial Impact: The financial implications of this order will become clear once the company receives the appeal effect order from the Income Tax Department.

• Compliance Status: No penalties, restrictions, or sanctions were imposed as part of the communication received from the CIT(A).

• Next Steps: The company continues to await the appeal effect order which will formalize the final decision and its subsequent impact.

Conclusion

This development is a positive outcome for Metropolis Healthcare as the CIT(A) has ruled in favor of the company on most of the appeal grounds. While the company’s financial impact is pending, this step brings them closer to resolving the income tax matter. The company’s management remains optimistic about the final appeal effect order and will disclose further details once it is received.

This disclosure is made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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