Shares of Polycab India Limited closed lower following the revelation of an income tax demand amounting to Rs 327.45 crore for the assessment year 2024-25. The demand, issued by the Office of the Deputy Commissioner of Income Tax in Mumbai, includes disallowances and additions totaling Rs 41.87 crore. Polycab has expressed concerns about possible errors leading to the higher demand and is taking steps to address the issue under the Income Tax Act provisions.
Polycab, after consulting tax advisors, believes the total demand surpasses the mentioned additions due to potential computational or clerical errors. The company has initiated the process of filing a rectification application with the Assessing Officer to correct these errors. Additionally, Polycab plans to challenge the additions under the Income Tax Act, 1961, considering the tax demand as legally unsustainable.
Despite the tax challenges, Polycab reported robust quarterly earnings with a significant year-on-year revenue increase to Rs 7,636.1 crore for the December quarter. The company’s EBITDA also rose to Rs 966.7 crore, although the EBITDA margin slightly narrowed. Polycab remains optimistic about its financial position and operational stability despite the ongoing tax dispute.
