Whalesbook
Antara Purukul Senior Living Limited (APSLL), a step-down subsidiary of Max India, has been issued a tax demand notice for ₹31.53 Crore for the Assessment Year 2024-25.
However, APSLL contests the demand, stating it arises from overlooked brought-forward losses. The company anticipates its final tax liability will be NIL. In response, APSLL has filed a rectification application with the Income Tax Department and is preparing an appeal. The company projects no material financial impact from this issue.
Max India acts as the holding company for the Max Group's senior care division, Antara, which offers independent senior living residences, assisted care, and home care. Max India has strategically shifted focus to its senior care and real estate ventures after demerging its healthcare assets, though the parent company has faced declining revenues and widening losses in recent fiscal years.
In a separate matter, Max Estates' subsidiary received a ₹35.48 lakh tax penalty for alleged income under-reporting. Max India itself has a history of past tax disputes.
Antara competes in India's growing senior living market against players like Ashiana Housing Ltd., Columbia Pacific Communities, and Paranjape Schemes. This market is projected for robust growth, driven by demographic shifts and changing family structures.
The primary risk for APSLL is if the Income Tax Department does not accept its rectification application or subsequent appeal, potentially leading to the tax demand being upheld.
Shareholders will be closely watching the progress of APSLL's rectification application and appeal, along with any further directives from the Income Tax Department. Updates on Max India's overall financial performance will also be relevant.