Edelweiss Fin Services subsidiary receives Rs 28.78 cr income tax demand

Ecap Equities, subsidiary of Edelweiss, received a tax demand notice of Rs 28.78 crore for the 2022-23 assessment year. The notice pertains to disallowances made during a scrutiny assessment. Edelweiss considers the demand unsustainable and plans to file appeals and rectification applications. The company expects no material impact on its finances or operations.

Edelweiss Financial Services on Wednesday said its subsidiary Ecap Equities has received an income tax demand notice of Rs 28.78 crore pertaining to the 2022-23 assessment year.

Ecap Equities Ltd, a subsidiary of the company, has received the assessment order and demand notice dated April 30, 2024 under Section 143(3) of the Income Tax Act, 1961, for assessment year 2022-23 and a tax demand of Rs 28.78 crore (including interest) on account of certain disallowances, Edelweiss said in a BSE filing.

Section 143(3) of I-T Act deals with scrutiny assessment.

The order is being examined and appropriate steps, including filing of appeals and rectification applications, would be taken in this regard.

''We are of the view that the demand is not sustainable and would have no material impact on financials, operations or other activities of the company,'' Edelweiss added.