Automobile Products of India Limited has received an adverse order from the Income Tax Department, resulting in a significant financial impact of Rs 14.01 crores. The company disclosed this development under Regulation 30 of SEBI listing regulations on March 31, 2026.

Income Tax Order Details

The Principal Commissioner of Income Tax, Mumbai-6, issued an order dated March 30, 2026, rejecting the company's revision petition filed under Section 264 of the Income Tax Act, 1961. The order upholds the additions to income made by the Jurisdictional Assessing Officer for Assessment Year 2015-16.

The additions were made under Section 147 read with Section 144 of the Income Tax Act by the Jurisdictional Assessing Officer. The penalty has been imposed under Section 271(1)(c) of the Act.

Company's Response

Automobile Products of India Limited has indicated that it is currently examining the said order and will take appropriate legal steps in due course. The company received the order on March 30, 2026, at approximately 11:38 AM.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has been simultaneously disseminated on the company's website at the investor relations section.

Financial Impact Assessment

The total financial impact on the company extends to the aforementioned tax demand and penalty amounts. This development pertains to Assessment Year 2015-16, indicating a matter that has been under dispute for several years before reaching this stage of rejection at the revision petition level.

Automobile Products of India Limited has received a penalty from BSE Limited for failing to maintain minimum public shareholding requirements during the October-December 2025 quarter. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Fine Details and Compliance Issues

The stock exchange communicated the penalty through an email dated February 19, 2026, imposing a fine for the specific three-month period when the company failed to meet regulatory requirements.

The penalty specifically relates to non-compliance with minimum public shareholding requirements as mandated under Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company Response and Remedial Action

In its disclosure dated February 24, 2026, the company acknowledged receipt of the penalty notice and provided assurance regarding compliance efforts. The management has indicated that corrective measures are being implemented to address the regulatory shortfall.

The company stated that it is currently in the process of complying with the minimum public shareholding requirements at the earliest possible time. This suggests active efforts are underway to rectify the compliance gap that led to the penalty.

Regulatory Framework

The fine falls under the broader regulatory framework governing listed companies in India. SEBI's listing regulations mandate specific minimum public shareholding thresholds that companies must maintain to ensure adequate market liquidity and investor participation. Non-compliance with these requirements can result in monetary penalties and other regulatory actions by stock exchanges.