Shares of Mahindra and Mahindra hit a 52-week high of Rs 1,739.95 on 28 December despite the company receiving a tax penalty of Rs 56 lakh for wrongly carrying forward input service distributor credit available in pre-GST into the GST regime with regards to its two-wheeler business.

In its regulatory filing, the company said that it had received an order from the office of the Assistant Commissioner, Division-IV, CGST & Central Excise, Ahmedabad South, for a tax notice penalty amounting to Rs 56,04,246 in relation to the two-wheeler business Mahindra Two Wheelers Ltd, which was demerged from Mahindra Two Wheelers Ltd and has been merged with the company.

The company added, “The order has been passed on the basis that closing balance of Input Service Distributor (ISD) credit available in the pre-GST regime was wrongly carried forward into the GST regime.”

The company further added that based on its assessment, they are planning to file for an appeal that will have a favourable outcome at the appellate level.

Mahindra further assured that the tax notice won’t have any material financial impact on the company.

At 3:30 pm, the shares of Mahindra and Mahindra closed 2.79% higher at Rs 1,735 on NSE.