Disclosure under Regulation 30 of SEBI Listing Regulations

Grovy India Limited (Scrip Code: 539522) has disclosed receipt of an order from the Income Tax Appellate Tribunal (ITAT), Delhi Bench "B" regarding Assessment Year 2020-21.

Details of the Order

  • Authority: Income Tax Appellate Tribunal, Delhi Bench "B", Delhi
  • Order Date: 9 October 2026
  • Receipt Date: 26 October 2026
  • Case Reference: ITA No. 2052/DEL/2026 for Assessment Year 2020-21
  • Previous References: This matter was previously disclosed to exchanges on 27 February 2025, 21 March 2025, and 14 January 2026

Case Background

The appeal was against the order of the Commissioner of Income Tax (Appeals)-26, Delhi dated 13 January 2026, which arose from the assessment order dated 20 February 2025 under section 147 of the Income Tax Act, 1961 (re-assessment proceedings).

Tribunal Decision

The ITAT partly allowed the company's appeal and:

  • Deleted the addition of ₹1,00,00,000 (One Crore Rupees) made under section 68 of the Income Tax Act in respect of loan received from M/s Nandini Tradex Pvt. Ltd.
  • Held that the company had discharged its onus regarding identity, creditworthiness, and genuineness of the transaction
  • Ruled that section 68 is not applicable to this case
  • Treated Grounds 1 to 4, 11 and 12 (relating to jurisdiction under section 148, initiation of penalty under section 271AAC(1), and interest under sections 234B, 234C and 234D) as academic and kept them open

Nature of Allegation

The Assessing Officer had alleged that the unsecured loan of ₹1,00,00,000 from M/s Nandini Tradex Pvt. Ltd. was an accommodation entry and treated it as unexplained cash credit under section 68 of the Income Tax Act.

Financial Impact

  • Original Demand: ₹119.24 lakh as per the assessment order
  • Current Impact: The deletion of the ₹1 crore addition is expected to reduce the tax demand
  • Operational Impact: No impact on the operations of the company
  • Violation Status: No violation or contravention has been held against the company

Litigation Details

  • Opposing Party: Deputy Commissioner of Income Tax, Central Circle-14, New Delhi
  • Forum: Income Tax Appellate Tribunal, Delhi Bench "B"
  • Dispute: Re-assessment under section 147 for AY 2020-21 regarding unsecured loan of ₹1,00,00,000 from M/s Nandini Tradex Pvt. Ltd.

Additional Information

  • The litigation is against the company only (not applicable to managerial personnel, key directors, promoters, or subsidiaries)
  • No settlement proceedings are involved

Disclosure Compliance

Filed by Simran Rajput, Company Secretary & Compliance Officer (Membership number: A77691) on 27 October 2026.