I-T Department Investigates Cipla For Alleged Tax Violations, Company Responds

UPDATE: In response to the on-going Income Tax (I-T) Department's survey related to alleged tax violations, Cipla has come forward. In an official statement, the company has said, "As notified to the exchanges on February 6, 2023, we have fully cooperated with the I-T Department in providing details and documents requested. We continue to do so, on all items indicated by the Department. There is no claim or demand made on us."

The Income Tax Department is reportedly investigating Cipla due to alleged tax violations. As first reported by CNBCTV18, sources said that the drugmaker Cipla is being 'survyed' for alleged tax violations and tax avoidance. However, the report adds that no tax demand has been raised by the I-T department so far. 

This is in continuation to the I-T Survey carried out against Cipla on January 31, 2023. In addition to this, the report mentions that the I-T department is investigating the drugmaker to check if Cipla has allegedly made wrongful claims under Section 80-IA.

This comes in after some investigations into Cipla have reportedly revealed that the company may have made wrongful claims worth Rs 400 crore. It must also be noted that IT Department officials are yet to confirm officially about this survey.

Lately, the Income Tax Department has been conducting surveys at several companies. As per last updates, the IT officials also surveyed BBC India offices, both in Delhi and Mumbai over alleged tax violations. More so, even Adani Wilmar's space in Himachal Pradesh was recently visited by concerned authorities. However, the company later clarified what the survey was about.

Disclaimer: This is a developing story. Please check back for more details