New India Assurance Awarded Rs 1,945-Crore Refund By Income Tax Department
The rulings were giving effect to the Commissioner of Income Tax (Appeals) orders in favour of New India Assurance.
The New India Assurance Co. is set to receive a cumulative refund of Rs 1,945.1 crore, including an interest of Rs 489.2 crore, from the Income Tax Department, according to an exchange filing on Monday.
The development came after the tax department passed various orders, ruling in favour of the company for assessment years 2013–14 to 2019-20. The rulings were giving effect to the Commissioner of Income Tax (Appeals) orders, it said.
The company is pursuing with the tax authorities to release the amount at the earliest, according to the filing.
This refund comes on the heels of New India Assurance posting a net profit of Rs 71 crore in the second quarter of the current financial year in comparison to a net loss of Rs 200 crore during the same period in the previous fiscal.
The total income rose to Rs 10,090 crore in the quarter ended September from Rs 9,839 crore in the year-ago period. The written gross premium also rose to Rs 9,620 crore during the July–September period as compared to Rs 9,397 crore a year ago.
Its net premium collection increased to Rs 8,067 crore from Rs 7,894 crore in the same quarter in the last fiscal. The total expenditure declined to Rs 10,577 crore from Rs 10,628 crore in the year-ago period.
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The share price of New India Assurance closed 3.12% higher at Rs 180.40 apiece on the National Stock Exchange, compared to a 1.32% advance in the benchmark Nifty 50. The stock has fallen 14.24% on a year-to-date basis.
Out of the three analysts tracking the company, one has a 'buy' rating on the stock, one suggests 'hold' and another recommends 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 5.8%.
