Hindustan Unilever Gets Rs 1,986 Crore Tax Demand From Mumbai Income Tax Department

Overview

• HUL disclosed an Assessment Order under Section 143(3) read with Section 144C(13) and a Notice of Demand under Section 156 totaling ₹1,986.25 crore.
• The Assistant Commissioner of Income Tax in Mumbai issued the order, which the company received around October 30–31 and disclosed after market hours on October 31.
• Tax authorities disputed valuations of related-party transactions and challenged certain depreciation claims, resulting in transfer-pricing adjustments and disallowances.
• HUL said the order has no material impact on its financials or operations and will file an appeal within the permissible timeline.
• The notice follows HUL’s recent Q2 update showing a 3.8% rise in consolidated net profit, and the stock closed 0.34% lower on October 31.