This is a regulatory disclosure filed by ESAB India Limited with the National Stock Exchange of India Limited and BSE Limited, providing an update on ongoing income tax proceedings.
The disclosure is a follow-up to the company's previous letter dated 30th December 2025 (No. ESAB/SE/2025), which informed the exchanges about the receipt of two orders from the Income Tax Assessing Officer. Those orders imposed penalties of ₹1,23,10,580 for Assessment Year (AY) 2017-18 and ₹21,86,636 for AY 2018-19.
Current Development
The company filed appeals under section 250 of the Income Tax Act before the Commissioner of Income Tax (Appeals) [CIT(A)] against both orders. Both appeals have now been dismissed.
Details of CIT(A) Orders
The Commissioner of Income Tax (Appeals) passed the following orders on 20th August 2026, upholding the original penalty impositions:
- For AY 2017-18: Order No. ITBA/NFAC/S/250/2026-27/1092388988(1) dated 20th August 2026, dismissing appeal No. NFAC/2016-17/10548514 and confirming the penalty of ₹1,23,10,580.
- For AY 2018-19: Order No. ITBA/NFAC/S/250/2026-27/1092361842(1) dated 20th August 2026, dismissing appeal No. NFAC/2017-18/10548910 and confirming the penalty of ₹21,86,636.
The penalties were confirmed under section 270A of the Income Tax Act, 1961. The authority alleged that the company had underreported its total income for both assessment years.
Financial Implications
The expected financial implications, as per the orders, are the crystallization of the penalty amounts: ₹1,23,10,580 for AY 2017-18 and ₹21,86,636 for AY 2018-19, resulting in a total cash outflow of ₹1,44,97,216.
Company's Action
The company has stated that it is in the process of preferring a further appeal against the orders of the Commissioner of Income Tax (Appeals).