Date: May 29, 2026
Regulatory & Legal Disclosure
Details of Regulatory Action
Authority: Income Tax Department, Kondapur, Hyderabad
Order Details:
- Type of Order: Rectification order under Section 154 of the Income Tax Act, 1961.
- Date of Receipt: May 28, 2026 (received via email communication).
- Assessment Year: 2020-21.
Nature of Contravention/Allegation:
The order pertains to the disallowance of a weighted deduction claimed by the company under Section 35(2AB) of the Income Tax Act. The deduction was for expenditure incurred on Research & Development (R&D) activities. The disallowance was made due to the want of approval from the Department of Scientific and Industrial Research (DSIR) in the prescribed Form No. 3CL. This issue was originally identified in an assessment order passed under section 143(3) of the Act.
The company had previously submitted a detailed reply to the authority, presenting both legal arguments and the merits of its case to request the dropping of the notice. The company's contentions were not considered by the Assessing Officer (AO) before passing this rectification order under Section 154.
Company's Response & Stated Impact:
The company is preferring an appeal against this rectification order with the appropriate appellate authority. The company has stated that it does not foresee any material impact on its financials, operations, or other activities as a result of this order.
No material disclosures under the following sections: Financial Results, Dividend Declaration, KMP / Board / Auditor Changes, Board Meeting Outcomes, Auditor’s Report, Disinvestment / Strategic Actions, Media Release / Investor Communication.