Overview of the Tax Notice

Max Estates Limited has received a formal Notice of Demand per Section 156 of the Income-Tax Act, 1961, from the Income Tax Department. This signature communication pertains to the assessment year 2023-24, wherein a tax obligation of ₹2.4 crore has been identified as payable by the company.

Details of the Tax Assessment

The demand for payment arises from tax credits associated with Max Ventures and Industries Limited (MVIL), which underwent a merger with Max Estates, effective July 31, 2023. This merger is retroactively set to April 1, 2022. The tax liability amount reflects the difference between the advance tax payments made and the assessed tax owing after accounting for Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and self-assessment payments.

Response to the Notice

According to Max Estates, the tax credits were previously disallowed by the Assessing Officer. However, these credits will be permitted following the migration of the Permanent Account Number (PAN) from MVIL to Max Estates.

The company plans to contest the tax demand and is currently evaluating its options for appeal. A representative of Max Estates stated, “The Company intends to comply with the notice, and the matter is under review for further action, including the possibility of filing an appeal against the demand. We will keep informed of any material developments in this regard.”