ICICI Lombard faces income-tax demand for AY 2020-21 and 2023-24

ICICI Lombard General Insurance Company Limited (BSE: ICICIGI) has announced it received orders under Section 143(3) of the Income-tax Act, 1961, from the Deputy Commissioner of Income-Tax, Central Circle 5(3), Mumbai, concerning Assessment Years (AY) 2020-21 and 2023-24. The order for AY 2020-21, received on March 31, 2025, specifies an income-tax demand of INR 9,587,670,179, which includes interest of INR 3,329,285,885 under Section 234B and INR 89,858,778 under Section 234D of the Act. The order for AY 2023-24, also received on March 31, 2025, at 8:43 a.m., raises an income-tax demand of INR 11,161,604,504/- (including interest of INR 2,160,310,549/- under Section 234B of the Act). The assessing officer made additions to the company's taxable income primarily due to disallowances related to marketing and advertisement expenses, provisions for claims (IBNR and IBNER), non-deduction of TDS, and exempt income, issues deemed industry-wide. ICICI Lombard intends to appeal the orders with Appellate Authorities and evaluate other legal options, including filing a Writ Petition and will evaluate and make appropriate disclosure in its financial statements.