The Income Tax Department Sent Hero Motocorp A Demand Notice For ₹605 Crore

By Author: SMT Finmedia
Total Articles: 1
Comment this article

The assessment orders and demand notices cover the fiscal years FY14, FY15, FY16, FY17, FY18, and FY20, specifically addressing disallowances identified within those periods.

Hero MotoCorp indicated that it is currently scrutinizing the received orders/notices and intends to take appropriate actions, including filing appeals and rectification applications. The management remains steadfast in their belief that the raised demand is unsustainable and may not accurately reflect the company's financial status, as expressed in the exchange filing.

Earlier this week, Hero MotoCorp had shared news of a 5.5% surge in total sales, with figures reaching 56,21,455 units in the fiscal year 2023-24, compared to 53,28,546 units in the preceding fiscal year.

In terms of product segmentation, Hero MotoCorp reported an uptick in motorcycle sales, with 51,90,672 units sold in FY24, up from 49,59,156 units in FY23. Additionally, scooter sales witnessed a growth trajectory, reaching 430,783 units in FY24 as opposed to 369,390 units in FY23.

Domestic sales also experienced a boost during FY24, totaling 54,20,532 units, ...
... compared to 51,55,793 units in FY23. Furthermore, the company saw an increase in exports, with figures climbing to 2,00,923 units in FY24 from 1,72,753 units in FY23.

The juxtaposition of the tax demand notice against the backdrop of rising sales highlights a juxtaposition in Hero MotoCorp's current financial narrative. As the company navigates through these challenges, its ability to sustain growth and address regulatory hurdles will be closely observed by investors and industry analysts alike.