Hero MotoCorp, a prominent player in the two-wheeler industry, has been served tax demand notices totaling around Rs 605 crore, inclusive of interest, spanning Assessment Year (AY) 2013-14 to AY 2017-18 and FY19-20 by the income tax department. About Rs 308.65 crore in tax notices, coupled with interest, amounting to Rs 296.22 crore, have been levied on the company based in New Delhi over six assessment years. Hero MotoCorp disclosed this information to the stock exchange on April 4.
The notices pertain to certain disallowances during the specified assessment periods. The company intends to challenge these orders by filing appeals with the appellate authorities and submitting rectification applications.
According to Hero MotoCorp's statement, the management views the raised demand as unsustainable and unlikely to significantly impact the company's finances, operations, or other activities. "In the opinion of the management, the demand raised is unsustainable in nature, and is unlikely to have material impact on financials, operations or other activities of the company," the two-wheeler major stated.
These assessment orders and demand notices were received on April 3 for six assessment years. Moreover, the company has been under scrutiny by the Income Tax department since June 2023 for specific transactions.
Additionally, a Ministry of Corporate Affairs (MCA) investigation had been initiated against Hero MotoCorp. Notably, in March 2022, the income tax department conducted raids on premises associated with the company as part of an alleged tax evasion probe.
On April 4, Hero MotoCorp shares ended trading 0.66 per cent lower at Rs 4,526.40 apiece on the BSE.