Solara Active Pharma Sciences announced on Friday, August 28, that the Income Tax Department has reduced a ₹161.92-crore tax demand against the company to nil after correcting the computation. According to reports from CNBC TV18, the demand related to assessment year 2019-20 and stemmed from a notice received by the pharmaceutical company on March 17, 2026. The resolution comes as part of the company's ongoing efforts to resolve tax-related disputes and maintain compliance with regulatory requirements.
Solara had subsequently sought a rectification under Section 154 of the Income-tax Act, arguing that the demand had been incorrectly calculated. As reported by CNBC TV18, after examining the application, the tax authority corrected the computation and reduced the entire ₹161.92-crore demand to nil. The rectification order was issued by the Assistant Commissioner of Income Tax, Central Circle-3, Thane, under Section 154 read with Section 147 of the Income-tax Act. This process demonstrates the company's commitment to resolving tax disputes through proper legal channels and ensuring accurate tax calculations.
According to the company's exchange filing reported by CNBC TV18, there is now no outstanding demand against Solara in connection with the notice and the matter will have no impact on its finances, operations or other activities. The order also does not identify any non-compliance, violation or default by Solara, and no penalty, restriction or sanction has been imposed on the company. This resolution provides clarity and certainty for the company's financial planning and operational activities going forward.
