AstraZeneca Pharma India Limited has received an order from the Income-tax Appellate Tribunal ("ITAT") issued under section 254 of the Income Tax Act, 1961 for the assessment year 2016-17. The order has been passed pursuant to the appeal filed by the Company against the final assessment order passed by the Tax Officer for the captioned year. The order has been pronounced on two grounds, one being the corporate tax ground and the other being the transfer pricing ground.

On the corporate tax ground, relief has been provided (subject to proper verification of facts by the Assessing Officer). On the transfer pricing ground, the ITAT has remitted the matter back to the Assessing Officer to review and pass the order in line with the directions given by the ITAT. The estimated favorable tax impact on account of the captioned ITAT order could be INR 124.9 million (approx.).

Name of the opposing party: Deputy Commissioner of Income-Tax, Circle-1(1)(1), Bangalore. An appeal was filed before ITAT against which the ITAT has passed the captioned order. Now, the Company would take up the matter with the Assessing Officer to pass the order in line with the directions provided by the ITAT.