Syngene International Limited, a leading contract research and manufacturing company, has received a favourable order from the Income Tax Department regarding a penalty notice issued for Assessment Year (AY) 2012-13. The order, dated March 27, 2025, was passed by the National Faceless Assessment Centre, indicating the dropping of penalty proceedings initiated earlier by the Income Tax Department.

Background of the Case

The Assistant Commissioner of Income-tax (AO SPL Range-6) had issued a show cause penalty notice on December 23, 2019, under Section 274 read with Section 271(1)(c) of the Income-tax Act, 1961. The notice was related to a disallowance of INR 3,35,53,717 for the Assessment Year 2012-13. The disallowance had raised concerns regarding possible financial implications for Syngene International.

However, after considering the submissions filed by the Company, the National Faceless Assessment Centre (NFAC) evaluated the case and issued an order dated March 27, 2025, in favour of Syngene International. The penalty proceedings initiated earlier have been dropped, bringing relief to the company.

Implications for Syngene International

The order issued by the National Faceless Assessment Centre confirms that:

• No penalty or restrictions have been imposed on Syngene International.

• There are no financial implications on the company's operations, financials, or other activities.

• The decision validates Syngene International's compliance with applicable tax regulations and reaffirms its adherence to regulatory requirements.

Compliance with SEBI Listing Regulations

As required under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI Listing Regulations), Syngene International has promptly disclosed this information to the stock exchanges. The company has ensured that the relevant details, including the favourable order dated March 27, 2025, are made available on its website for public reference.

Key Details of the Order

The disclosure made by Syngene International Limited as part of Form A includes the following important details:

• Type of Communication: Order under Section 271(1)(c) of the Income-tax Act, 1961

• Date of Communication: March 27, 2025

• Authority Issuing the Order: National Faceless Assessment Centre

• Summary of the Order: Dropping of penalty proceedings related to disallowance for AY 2012-13

Financial and Operational Impact

Syngene International Limited has clarified that the order has no material impact on its financials, operations, or ongoing activities. The decision effectively resolves the matter without any adverse consequences on the company.

Company’s Statement

In a formal statement, Priyadarshini Mahapatra, Head Legal, Company Secretary & Compliance Officer of Syngene International Limited, affirmed that the information provided in Form A under Regulation 30(13) of SEBI Listing Regulations is true, correct, and complete to the best of her knowledge. The disclosure aims to maintain transparency and ensure compliance with regulatory guidelines.

Importance of the National Faceless Assessment Centre’s Role

The National Faceless Assessment Centre (NFAC), introduced as part of the government's effort to simplify tax processes and ensure transparency, played a significant role in evaluating and resolving this matter. The NFAC has been instrumental in conducting assessments and issuing orders without physical interaction, ensuring a seamless and unbiased resolution process.

Past Penalty Notice and Disallowance Details

The penalty notice issued by the Assistant Commissioner of Income-tax (AO SPL Range-6) in December 2019 was related to a disallowance of INR 3,35,53,717 for Assessment Year 2012-13. Such disallowances are often subject to scrutiny, requiring companies to justify their compliance with tax regulations. Syngene International had filed its submissions, which were subsequently considered by the NFAC, leading to the dropping of the penalty proceedings.

Commitment to Regulatory Compliance

Syngene International Limited remains committed to maintaining high standards of regulatory compliance and corporate governance. The company regularly ensures that its disclosures, submissions, and filings adhere to the applicable guidelines laid down by regulatory authorities, including SEBI, Income Tax Department, and other relevant bodies.

Conclusion

The favourable order received by Syngene International Limited from the Income Tax Department underscores the company's commitment to regulatory compliance and strengthens its reputation in the industry. The decision to drop the penalty proceedings provides clarity and relief to the company, ensuring that its operations and financial stability remain unaffected.

The National Faceless Assessment Centre's order dated March 27, 2025, highlights the effectiveness of the faceless assessment mechanism in ensuring fair and transparent resolution of tax matters. Syngene International has confirmed that this order does not impose any penalties, restrictions, or sanctions on the company, reaffirming its compliance with the Income-tax Act, 1961.

The company will continue to adhere to the highest standards of transparency and compliance, ensuring that all regulatory updates and disclosures are communicated effectively to stakeholders and the public.

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