SMSPHARMASMS Pharmaceuticals Ltd.
SMS Pharmaceuticals wins ₹45.63 crore tax demand appeal
- Legal
- Pharmaceuticals
Reviewed byKeshav SehgalBlacklitt Research
SMS Pharmaceuticals (NSE: SMSPHARMA) has had an income tax demand of ₹45.63 crore, including interest, vacated after an appellate order allowed its appeal, it said in a filing on 31 Oct 2026. The order is dated 30 Oct 2026 and was received the same day. The company's market value is about ₹4,789 crore.
Key highlights
- Tax demand vacated: ₹45.63 crore including interest
- Assessment Year: 2023-24
- Appellate order dated: 30 Oct 2026
- Earlier intimation to exchanges: 24 Mar 2025
The appeal order in numbers
| Item | Detail |
|---|---|
| Authority | Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi |
| Order | Appellate order under section 250 of the Income-tax Act, 1961, dated 30 Oct 2026 |
| Assessment order | Dated 22 Mar 2025, under section 144 read with section 144B, Assessment Year 2023-24 |
| Demand vacated | ₹45.63 crore including interest |
| Outcome | Appeal allowed in favour of the company |
| Penalty or sanction | None imposed pursuant to the communication |
What the appellate order decided
The Commissioner of Income-tax (Appeals) allowed the company's appeal against the assessment order for Assessment Year 2023-24, the company said in its filing. The order was passed under section 250 of the Income Tax Act, 1961, and was received on the day it was dated, 30 Oct 2026.
As a result, the outstanding tax demand of ₹45.63 crore, including interest, stands vacated. The filing says the assessment order had made an addition to the income the company returned, with a demand notice and a penalty notice issued alongside it.
Background and the company's disclosures
The company first informed the exchanges of the assessment order in an intimation dated 24 Mar 2025. The current filing is an update on that matter, reporting the appellate outcome.
The company says the financial impact is not applicable, since the appeal has been allowed in its favour. No penalty, restriction or sanction was imposed under the communication, and the company reports no action is required.
What the appeal order means for SMS Pharmaceuticals' shareholders
The order removes a tax demand of ₹45.63 crore, including interest, for Assessment Year 2023-24 from the company's outstanding position. The company's latest quarter, Q1 FY27, reported consolidated total income of ₹208.71 crore and net profit of ₹20.91 crore.
The filing does not say whether the tax amount already paid will be refunded, how much of the demand was interest, or whether the penalty under the assessment order is also vacated. It also does not state any effect on the company's financial results.
Filed with NSE on . Reference: Original filing (PDF)
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