ICICI Prudential Life Insurance Co. received a demand order of Rs 328.4 crore from the Maharashtra income tax authority on Friday for assessment year 2023–24 for for various alleged violations.
The tax demand from the assistant commissioner of income tax includes an interest of Rs 62.9 crore, according to exchange filing.
The authority said transfer from shareholders' account to policyholders' account is considered as income. It also said the income earned by shareholders is classified as "income from other sources". It added that some marketing and advertising costs were considered ineligible and cannot be deducted.
The company will file an appeal against the order before the Commissioner (Appeals) within the prescribed timelines, it added.
ICICI Prudential reported a 43% rise in its consolidated net profit to Rs 325 crore in the third quarter of the current financial year. The company's net premium income grew 24% to Rs 12,261 crore.
Shares of ICICI Prudential closed 4.57% lower at Rs 564.35 apiece on the National Stock Exchange before the announcement, compared to a 0.31% fall in the benchmark Nifty. The stock has fallen 7.28% in the last 12 months but declined 13.82% on a year-to-date basis.
Twenty out of the 34 analysts tracking the company have a 'buy' rating on the stock, 13 suggest 'hold' and one recommends 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 28.7%.
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