Jana SFB jumps over 2.50% after lender receives partial relief from NFAC in tax-related case

Jana SFB Share Price: Jana Small Finance Bank jumped 2.51 per cent in early trading on BSE on Thursday (March 21, 2024) after the company received partial relief from National Faceless Assessment Centre in an income tax-related matter.

The stock of the non-banking finance company (NBFC) was trading up by 1.03 per cent, or Rs 3.95, at Rs 386.45.

The stock ended the trading session on Wednesday at Rs 382.50 and opened at Rs 385.15. It rose to the day's high of Rs 392.10, a 2.51 per cent jump from the previous close. 

What did NFAC said in its order?

NFAC had passed an order on March 31, 2022, disallowing certain expenditure incurred by the Bank.

Vide the said order NFAC had raised a demand of Rs 76.23 crores (including interest of INR 18.91 crore) without giving credit to the taxes paid/tax credit available to the company.

Jana SFB had filed an appeal before the NFAC challenging the above order.

NFAC has now passed an order disposing off the appeal.

While the disallowance made by assessing officer amounting to Rs. 25.03 crore has been upheld, Jana SFB said in a statement on Wednesday. 

Further, NFAC directed the assessing officer to allow the credit of taxes paid/credit available of Rs 56.52 crore after due verification along with interest.