NSE/BSE Codes: BSE: 544135, NSE: MUKKA

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure regarding appellate order received from Commissioner of Income Tax (Appeals)-2, Panaji in relation to income tax assessment for Assessment Year 2018-19.

Involved Parties / Authorities:

  • Assistant Commissioner of Income Tax, Central Circle-1, Mangalore (Opposing Party)
  • Commissioner of Income Tax (Appeals)-2, Panaji (Appellate Authority)
  • Income Tax Department

Date / Timeline of Event:

  • Assessment Year: 2018-19
  • Appellate Order Date: 30th June 2026
  • Date of Receipt of Order: 30-06-2026
  • Disclosure Date: 01-07-2026

Brief Description of Outcome / Dispute:

The litigation pertains to assessment completed under Section 143(3) read with Section 263 of the Income-tax Act, 1961 for AY 2018-19. The Assessing Officer had made additions towards (i) alleged excess stock amounting to ₹11,14,72,010 and (ii) prior period income amounting to ₹4,48,21,141. The Commissioner of Income Tax (Appeals) has partly allowed the appeal.

Impact of Outcome:

Financial Impact:
  • Addition of ₹4,48,21,141 (prior period income) has been completely deleted
  • Addition of stock of ₹3,60,16,402 has been deleted out of total ₹11,14,72,010
  • Addition relating to alleged excess stock amounting to ₹7,54,55,608 has been sustained
  • The sustained amount of ₹7,54,55,608 is assessed under special tax rate u/s 115BBE (effective rate 78%)
  • Company has already discharged tax liability at normal tax rate (effective rate 34.944%)
  • Consequential tax impact will be determined in accordance with Income-tax Act provisions
Operational / Business / Strategic Impact:

No material operational or business impact disclosed. The matter pertains specifically to historical tax assessment.

Other Implications:

The dispute involves taxation of income at special tax rate u/s 115BBE versus normal tax rate already paid by the company.

Next Steps / Required Actions:

The Company is evaluating the appellate order and considering appropriate legal remedies available under law against the sustained addition of ₹7,54,55,608.