Nandan Denim Limited, a leading player in the textile industry, has successfully resolved disputed tax demands for the financial years 2015-16 and 2016-17. The resolution comes following an Order issued by the Income Tax Department under Section 250 of the Income Tax Act, 1961. This update was disclosed to the stock exchanges on November 30, 2024, in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Order

The Commissioner of Income Tax (Appeals), Ahmedabad, reviewed the disallowance of deductions under Section 80IA of the Income Tax Act, 1961, as made by the Assessing Officer (AO). The findings were as follows:

• Assessment Year 2015-16: A previously disallowed deduction of Rs. 11,59,76,459 was allowed, nullifying the disputed demand of Rs. 8,29,82,980.
• Assessment Year 2016-17: Similarly, a disallowed deduction of Rs. 7,89,11,003 was allowed, reducing the disputed demand of Rs. 4,33,43,410 to nil.

This significant revision brings relief to the company and ensures compliance with tax laws while maintaining its credibility.

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Financial and Operational Impact

Despite the adjustments, Nandan Denim has confirmed that there is no material impact on the company’s financial or operational activities. This resolution not only eliminates pending disputes but also enhances the company's focus on core business operations and growth strategies.

Strategic Importance

Resolving tax disputes is critical for listed entities as it reflects sound financial management and adherence to compliance norms. For Nandan Denim Limited, this outcome reinforces its financial stability and provides greater clarity to its stakeholders.

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