Details of the Communication Received

  • Type of Communication: Order under Section 250/143(3) of the Income Tax Act, 1961.
  • Receiving Authority: Office of the Deputy Commissioner of Income Tax, Circle-5(1), Kolkata.
  • Date of Receipt: 31st May 2026.

Background and Material Contents

This disclosure is a continuation of earlier communications made to the exchange on 14th August 2023 and 18th April 2026. The matter concerns the company's Income Tax Return for the financial year 2017-2018.

The issue originated when the Income Tax Department, after an assessment, passed a proceeding order in April 2021. This initial order disallowed expenses of ₹9.89 Crore. This disallowance was specifically related to a weighted deduction of 150% under Section 35(2AB) of the IT Act on R&D expenses of ₹6.59 Crore. The reason for the disallowance was the non-receipt of Form 3CL from the Department of Scientific and Industrial Research (DSIR).

Subsequently, the DSIR itself disallowed only ₹1.50 Crore of these expenses and filed the requisite Form 3CL with the Income Tax Department. Following this, on 8th May 2021, the company filed an application with the Commissioner of Income Tax (Appeals) [CIT (Appeals)] against the initial order of April 2021.

The process continued with the department issuing a notice under Section 250 of the Income Tax Act on 30th March 2026, directing the company to file its grounds of appeal. The company complied and filed these grounds on 6th April 2026.

Final Order and Financial Implications

Based on the company's appeal, the CIT (Appeals) has passed an order. This order disallows ₹1.50 Crore of labour expenses, as per the Form 3CL issued by the DSIR.

As the company has decided not to contest the case further, the Assessing Officer has passed a final assessment order. The order confirms the disallowance of the ₹1.50 Crore amount. Furthermore, it disallows the weighted deduction on this amount, which amounts to ₹0.75 Crore.

The total resultant tax liability for the company is ₹0.78 Crore.

Company's Action and Other Details

  • Action Taken: The company has accepted the order.
  • Penalty/Restriction: The disclosure confirms there are no penalties, restrictions, or sanctions imposed pursuant to this communication.
  • Non-compliances: The disclosure states there were no aberrations or non-compliances identified by the authority.

This disclosure is made in compliance with Regulation 30(13) of the SEBI Listing Regulations for communications from regulatory, statutory, enforcement, or judicial authorities.