Archean Chemical Industries receives ₹34.24 lakh tax penalty for AY 2017-18

Archean Chemical Industries has received a penalty order of ₹34.24 lakh for the assessment year 2017-18 from the Deputy Commissioner of Income Tax-Central Circle 1(4), Chennai. The penalty was imposed under section 270A of the Income Tax Act, 1961, concerning under-reported income arising from misreporting. The company received the order on June 30, 2026.

Details of the Order

The penalty order was passed under section 274 read with section 270A of the Income Tax Act, 1961. The proceedings relate to under-reported income, which is a consequence of misreporting. The table below outlines the key particulars of the order:

Sl. No.	Particular	Details
1	Name of the authority	Deputy Commissioner of Income Tax-Central Circle 1(4), Chennai
2	Nature and details of the order passed	The Penalty order is passed u/s 274 read with section 270A of the Income Tax Act, 1961 amounting to Rs. 34,24,248 for the AY 2017-18.
3	Date of receipt of direction or order	Order received on June 30, 2026.
4	Details of the violation(s)/contravention(s)	Penalty proceeding for under-reported income which is in consequence of misreporting thereof.
5	Impact on financial, operation or other activities	The Company is in the process of filing appeal against the present penalty orders. The financial impact of the demand if any is to the extent of the Income Tax and Interest.

Company Response

Archean Chemical Industries stated that it will contest the order by filing an appeal before the Commissioner of Income Tax (Appeals) within the prescribed timelines. Based on a preliminary assessment, the company expressed hope for a favorable outcome. It further stated that it does not reasonably expect the order to have any material financial impact on its operations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.56%	-0.80%	-3.10%	+2.24%	-21.54%	+15.13%

CTL Trusteeship Limited has created an encumbrance on 79,00,000 equity shares of Archean Chemical Industries Limited , representing 6.40% of the company's total share capital. The pledge was established on June 10, 2026, with CTL Trusteeship Limited acting in the capacity of Security Trustee for the benefit of Lender(s).

The disclosure was made pursuant to Regulation 29 (1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The acquirer, CTL Trusteeship Limited, clarified that it does not belong to the promoter or promoter group of the target company. The shares are listed on BSE Limited and National Stock Exchange of India Limited.

Details of the Encumbrance

The filing outlines the specific details of the acquisition by way of pledge. The total equity share capital of the target company remains INR 12,34,58,394, consisting of shares with a face value of Rs. 02 each. The total diluted share capital also remains unchanged at this figure.

Particulars	Number of Shares	% of Total Share Capital	% of Total Diluted Share Capital
Shares pledged (Encumbrance)	79,00,000	6.40	6.40
Total holding after acquisition	79,00,000	6.40	6.40

Regulatory Filing Details

The document confirms that prior to this acquisition, the acquirer held no shares carrying voting rights, shares in the nature of encumbrance, voting rights otherwise than by shares, or warrants and convertible securities. The mode of acquisition was specifically the pledge of equity shares in favour of CTL Trusteeship Limited.

Deesha Srikkanth, Senior Vice President and Authorised Signatory of CTL Trusteeship Limited, signed the disclosure in Mumbai on June 12, 2026. The filing provides the necessary transparency regarding the change in shareholding structure due to the creation of the pledge.