Calcutta HC sets aside ₹58.3 crore tax demand against Duroply Industries
- Calcutta High Court set aside a ₹5,827.57 lakh income-tax demand for AY 2018-19
- The original assessment order dated March 18, 2021, has been quashed
- Matter remitted to Assessing Authority for fresh assessment with hearing opportunity
- Disclosure made under SEBI Regulation 30 on October 8, 2026
*this image is generated using AI for illustrative purposes only.
Duroply Industries received relief as the Calcutta High Court set aside an income-tax demand of ₹5,827.57 lakh for Assessment Year 2018-19. The court order dated October 6, 2026, quashed the final assessment order passed in March 2021.
The litigation originated from a demand raised under Section 156 of the Income-tax Act, 1961, following an assessment order under Section 143(3). The company had challenged this demand via a Writ Petition before the Hon'ble High Court at Calcutta.
Court Ruling and Next Steps
The High Court did not rule on the merits of the tax liability itself but instead remitted the matter back to the Assessing Authority. This procedural decision requires the tax department to pass a new, appropriate assessment order. Crucially, the authority must provide the company an opportunity to place its case before finalizing the new order.
| Particulars | Details |
|---|---|
| Demand Amount | ₹5,827.57 lakh |
| Assessment Year | 2018-19 |
| Original Order Date | March 18, 2021 |
| High Court Order Date | October 6, 2026 |
| Status | Remitted to Assessing Authority |
Impact on Financial Position
The immediate impact is the removal of the contingent liability associated with the specific demand of ₹5,827.57 lakh. However, the financial outcome remains uncertain until the Assessing Authority completes the fresh assessment process. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency for shareholders regarding material litigation developments.
Historical Stock Returns for Duroply Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.29% | +2.27% | -2.52% | -28.30% | -43.87% | +14.70% |
What is the expected timeline for the Assessing Authority to issue the fresh assessment order, and how might this delay affect Duroply's short-term liquidity planning?
Will Duroply Industries need to re-provision for this contingent liability in upcoming quarterly earnings if the new assessment results in a similar demand?
How does this procedural victory influence investor confidence and the stock's valuation given the unresolved nature of the underlying tax merits?
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