Income Tax Department Issues Rs 248.74 Crore Notice To Colgate
Pune, 29th July 2024: The Income Tax Department has issued a tax demand notice of ₹248.74 crore to Colgate-Palmolive (India) Limited. The notice, received by the company on July 26, 2024, relates to a transfer pricing case for the assessment year 2020-21. Colgate-Palmolive (India) Limited plans to appeal this notice before the appellate tribunal, asserting that it will not affect their financial operations or other activities.
The ₹248.74 crore tax demand includes an interest amount of ₹79.63 crore. Colgate-Palmolive India Limited (CPIL), which operates in the oral care and personal care sectors, informed the stock market about the notice. This notice pertains to the financial year ending March 31, 2021. The company stated that it will challenge the notice before the appellate tribunal.
DCP Central M Harshvardhan stated, “Anyone found guilty in this incident will not be spared. We are taking strict action against those responsible and maintaining law and order.” He also noted that there was no permission for commercial activities in the basement. “We have sought information from the MCD and will investigate their role. The investigation is ongoing from all angles,” he added.
The Income Tax Department has been stringent about compliance, leading to this notice. CPIL has already filed appeals against standard disallowances in line with previous assessment years. The company clarified that this order will not impact its financial operations or any other activities.
In the financial year 2023-24, CPIL reported net sales of ₹5,644 crore. The company remains confident in its compliance with tax regulations and is prepared to contest the notice through legal channels. This case highlights the ongoing scrutiny by tax authorities on multinational corporations and their transfer pricing practices.
