The matter relates to the claiming of input tax credit against supply of services, which the authority believes are ineligible for such claims. The company has been advised by its legal and tax counsel that it has a good contestable case.

The company said that this is an industry wide issue and it will be taking appropriate steps in due course to reply to the show cause notice and contest the matter. It may be noted that Rs 250 crore has been deposited under protest with the authority in this matter in the past, it added.

Further, the company informed that the Insurance Regulatory and Development Authority of India (IRDAI) has granted its approval for transfer of shares of HDFC Life, from HDFC to HDFC Bank in view of the proposed amalgamation.

The IRDAI has also granted its approval for HDFC to acquire additional shares in HDFC Life so as to hold more that 50% of its total share capital.

HDFC Life Insurance Company is a joint venture between HDFC, India's leading housing finance institution and Abrdn (Mauritius Holdings) 2006, a global investment company. HDFC Life is a leading long-term life insurance solutions provider in India, offering a range of individual and group insurance solutions that meet various customer needs such as protection, pension, savings, investment, annuity and health.

The company's standalone net profit rose marginally to Rs 358.66 crore in Q4 FY23 as against Rs 357.52 crore posted in Q4 FY22. Net premium income jumped 35.95% to Rs 19,426.57 crore in the quarter ended 31 March 2023 as compared with Rs 14,289.66 crore recorded in Q4 FY22.

The scrip rose 0.46% to currently trade at Rs 629.85 on the BSE.