SPANV Medisearch Lifesciences receives ₹306.97 crore IT demand notice

The hospital chain Krishna Institute of Medical Sciences Ltd (KIMS) revealed in a regulatory filing on Tuesday that its subsidiary, SPANV Medisearch Lifesciences Private Ltd, has received a demand notice under Section 156 of the Income Tax Act, 1961, amounting to ₹306.97 crore. This notice, related to the assessment year 2022-2023, raises concerns regarding various financial transactions such as share capital receipts, share premium, and unsecured loan repayments.

Of note, the notice pointed out SPANV’s unintentional failure to provide explanations for the queries posed by the Income Tax Department during the said assessment year.

However, KIMS has internally assessed the situation and determined that the demand notice lacks legal basis and is entirely defensible based on factual grounds. The company believes there won’t be a significant financial impact from this notice, as it considers it legally unjustifiable and factually correct.

Moreover, KIMS clarified that SPANV was not its subsidiary for the assessment year 2022-23. In response to the demand notice, SPANV plans to challenge the assessment through an appeal under Part A of Chapter XX of the Income-tax Act, 1961, at the National Faceless Appeal Centre (NFAC).

On the stock market, Krishna Institute of Medical Sciences Ltd’s shares closed yesterday at ₹1,939.95, showing a decrease of ₹11.95 or 0.61% on the BSE. Taxscan