United Spirits Limited faces ₹ 31.9 crore tax penalty in subsidiary case

United Spirits Limited, the parent company of Palmer Investment Group Limited, has disclosed that its subsidiary has been levied a penalty of INR 31,91,98,742 under section 271(1)(c) of the Income Tax Act, 1961, for the financial year 2013-14. This development follows earlier intimation on August 14, 2023, regarding the ongoing proceedings.

The penalty is linked to transfer pricing adjustments, and the company has taken the matter to the High Court, citing merit and a strong case. United Spirits Limited intends to contest the penalty and file an appeal before the relevant tax authorities or courts in due course.

The parent company does not anticipate any significant financial repercussions from this penalty.