NewsCompucom Software Limited Receives Income Tax Order Under Section 263 for Assessment Year 2022-23Compucom Software Limited Receives Income Tax Order Under Section 263 for Assessment Year 2022-23
Compucom Software Limited has received an Income Tax Order under section 263 for assessment year 2022-23, questioning expenses totaling ₹1.22 crore including building repairs, PF/ESI contributions, and section 80IA deductions. The company is reviewing the order and will respond within prescribed timelines through tax advisors.
*this image is generated using AI for illustrative purposes only.
Compucom Software Limited has informed stock exchanges about receiving an Order under section 263 of the Income Tax Act, 1961 from the Income Tax Department. The order was received on 30th March 2026 and pertains to assessment year 2022-23, raising concerns about the original assessment completed by NFAC on 28th February 2024.
Key Issues Identified by Income Tax Department
The Principal Commissioner of Income Tax, Jaipur-2, found that the assessing officer failed to conduct necessary enquiries on several critical matters during the original assessment. The department identified three main areas of concern that were not properly examined:
| Issue Area | Amount (₹) | Details |
|---|---|---|
| Building Repair Expenses | 85,68,190 | Capital nature vis-à-vis WDV of ₹192.21 lakhs |
| PF/ESI Contributions | 6,19,103 | Delayed employees' contribution disallowance |
| Section 80IA Deduction | 30,43,023 | Allowability without mandatory Form 10CCB filing |
Assessment Background and Timeline
The company had filed its return for assessment year 2022-23 on 30th November 2022 under section 139(1). The assessment was subsequently completed by NFAC on 28th February 2024 under section 143(3) read with section 144B. However, the Income Tax Department found that the assessing officer accepted the company's claims without independent verification or invoking relevant statutory provisions.
Potential Financial Implications
While the company states that the precise financial impact cannot be quantified at this stage, the order could result in significant additional tax liability. If the identified issues are revised under section 263, it may lead to:
- Disallowance of building repair expenses worth ₹85,68,190
- Disallowance of employees' contribution to PF/ESI amounting to ₹6,19,103
- Disallowance of deduction under section 80IA of ₹30,43,023
- Additional tax liability along with applicable interest and penalties
Company's Response and Next Steps
Compucom Software Limited has confirmed that no penalty, restrictions, or sanctions have been imposed at this stage. The company is currently reviewing the communication and compiling necessary documents and explanations. Management plans to submit clarifications to the Income Tax Department within the prescribed timeline in consultation with tax advisors.
Regulatory Compliance Details
The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations on 2nd April 2026. The company cited coordination with other departments, year-end work pressures, and office holiday on 31st March 2026 as reasons for the delay in disclosure. The information has also been made available on the company's website at www.compucom.co.in for public access.
Historical Stock Returns for Compucom Software
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.31% | +12.74% | +5.30% | -29.35% | -18.82% | +60.47% |
How might this Income Tax order impact Compucom Software's quarterly earnings and cash flow if the reassessment results in maximum disallowances?
Could this scrutiny trigger similar reviews of Compucom's tax assessments for other financial years, potentially expanding the company's tax liability exposure?
What defensive strategies might Compucom employ during the reassessment process to minimize potential disallowances and additional tax burden?
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