Disclosure under Regulation 30 of SEBI LODR
Nature of the Event
This is a regulatory disclosure pursuant to Regulation 30 of the SEBI Listing Regulations and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, regarding an order received from the Income Tax Department.
Details of the Action
- Name of the Authority: Income Tax Department – Assessment Unit (National Faceless Penalty Centre)
- Nature of Action: Levy of a penalty of ₹2,44,93,394 (₹2.45 crore) under Section 271(1)(c) of the Income-tax Act, 1961.
- Assessment Year: 2016-17
- Date of Receipt of Order: The order was dated June 29, 2026, and received by the company on July 02, 2026.
Details of the Alleged Violation
The penalty was levied due to:
- A disallowance under Section 14A of the Income-tax Act, 1961, read with Rule 8D.
- A transfer pricing adjustment.
Financial and Operational Impact
- The quantifiable financial impact is explicitly stated as the penalty amount of ₹2,44,93,394 to be paid.
- The disclosure states there is no other impact on the financial, operational, or other activities of the company.
Company's Response and Future Course of Action
Based on the merits of the matter, prevailing law, and advice of counsel, the company is planning to appeal against this order before the Appellate Authorities. The company reasonably expects a favourable order from the appellate process.