Disclosure Context

Refex Industries Limited (Scrip Code: 532884, Symbol: REFEX) has made a disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, regarding an order received from the Commissioner of Income Tax (Appeals).

Order Details

  • Authority: Commissioner of Income Tax (Appeals)-20, Chennai
  • Order Date: October 14, 2026
  • Date of Receipt: October 14, 2026
  • Appeal Reference: CIT(A), Chennai-18/10561/2013-14 (ITA No. 344/CIT(A)-20/2026-27; DIN & Order No. ITBA/APL/S/250/2026-27/1094547311(1))
  • Assessment Year: 2014-15
  • Date of Litigation Initiation: May 13, 2022 (appeal filed against Assessment Order u/s 143(3))

Original Assessment Details

The reassessment order dated March 31, 2022, passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961, included:

  • Long-Term Capital Gains Addition: ₹17,47,79,079 on transfer of land, building and machinery, computed by invoking Section 50C based on guideline value
  • Depreciation Disallowance: ₹36,39,505 for excess depreciation claimed on alleged additions to transformers
  • Original Tax Demand: ₹8,21,12,856 on assessed income of ₹17,84,18,584
  • Rectified Demand: Reduced to ₹7,51,16,883 pursuant to a rectification order dated May 10, 2023, under Section 154

CIT(A) Order Outcome

The CIT(A) has:

  • Upheld the validity of the reassessment proceedings initiated under Section 147
  • Directed the Assessing Officer to obtain the final value adopted/assessed by the competent stamp valuation authority pursuant to proceedings under Section 47A of the Indian Stamp Act, 1899 for the land in question
  • Directed deletion of the depreciation disallowance of ₹36,39,505 in entirety
  • Remanded the Long-Term Capital Gains addition of ₹17,47,79,079 to the Assessing Officer for fresh quantification rather than finally determining or deleting it
  • Partly allowed the appeal

Company's Response

The company is evaluating the order, including the directions issued to the Assessing Officer, and will take appropriate legal steps, including filing a further appeal before the Income Tax Appellate Tribunal to the extent permissible and warranted to protect its interests.

Financial Impact

The order is favorable to the company as the CIT(A) has deleted in entirety the depreciation disallowance of ₹36,39,505. The Long-Term Capital Gains addition has been set aside and remanded for fresh quantification rather than confirmed. The company will account for the matter in its books and financial statements as required under applicable accounting standards and will make further disclosures upon crystallization of the final tax liability, if any, or upon any further developments.