NSE/BSE Codes: BSE: 532478, NSE: UBL

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under Regulation 30 of SEBI Listing Regulations regarding receipt of penalty orders from Income Tax Department - National Faceless Assessment Centre (NFAC).

Involved Parties / Authorities:

  • Assessment Unit, Income Tax Department - National Faceless Assessment Centre (NFAC)
  • Hon'ble Income Tax Appellate Tribunal (ITAT)
  • Learned Commissioner of Income-tax (Appeals)

Date / Timeline of Event:

  • Penalty orders received on September 28, 2026 and September 29, 2026
  • Disclosure filed with exchanges on September 29, 2026
  • Covers Assessment Years: 2013-14, 2014-15, 2017-18 (two orders), 2018-19, 2020-21, and 2022-23

Brief Description of Outcome / Dispute:

The Income Tax Department has levied penalty demands totaling ₹54,82,99,656 (₹54.83 crore) across seven assessment years. The penalties were imposed under sections 271(1)(c) and 270A of the Income-tax Act, 1961. The company has already filed appeals against the underlying assessment orders, which are currently pending adjudication before the ITAT and Commissioner of Income-tax (Appeals). The NFAC proceeded to levy penalties on issues that are still pending adjudication in these appeals.

Impact of Outcome:

Financial Impact:
  • Total penalty demand: ₹54,82,99,656 (₹54.83 crore)
  • Breakdown by Assessment Year:
  • AY 2013-14: ₹9,53,62,045 under section 271(1)(c)
  • AY 2014-15: ₹8,15,27,270 under section 271(1)(c)
  • AY 2017-18: ₹4,15,29,600 under section 270A
  • AY 2017-18: ₹2,50,94,010 under section 270A
  • AY 2018-19: ₹1,03,82,400 under section 270A
  • AY 2020-21: ₹2,45,12,525 under section 270A
  • AY 2022-23: ₹26,98,91,806 under section 270A

The company states it does not anticipate any material financial impact except for a minimal statutory pre-deposit required at the time of admission of appeal, if any.

Operational / Business / Strategic Impact:

No material operational or business impact disclosed. The company is pursuing appropriate legal remedies to challenge the penalty orders.

Other Implications:

The disclosure highlights potential errors in penalty calculation by NFAC, including:

  • Excess penalty of ₹43,34,639 apparent on record
  • Excess penalty of ₹68,57,670 apparent on record
  • Excess penalty of ₹7,55,05,446 apparent on record
  • Duplicative penalty amounting to ₹99,35,764 despite same penalty already being levied

Next Steps / Required Actions:

  • The company will pursue legal remedies through the appellate process
  • Appeals are already pending before Hon'ble ITAT and Commissioner of Income-tax (Appeals)
  • Company believes it has a strong case to defend before appellate authorities