NewsCrisil Limited Receives Tax Re-assessment Order with Demand of ₹121.20 Crores for AY 2017-18Crisil Limited Receives Tax Re-assessment Order with Demand of ₹121.20 Crores for AY 2017-18
Crisil Limited disclosed receiving a re-assessment order from Income Tax Authority for AY 2017-18 with a demand of ₹121.20 crores. The order relates to merged subsidiaries' income for FY 2016-17, where despite the Assessing Officer accepting the offered income and acknowledging no tax escapement, computational errors led to unwarranted additions and incorrect tax demand. The company stated no immediate financial impact and plans to file rectification application and appeal.
*this image is generated using AI for illustrative purposes only.
Crisil Limited has received a re-assessment order from the Income Tax Authority demanding ₹121.20 crores for Assessment Year 2017-18. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Regulations on March 24, 2026.
Details of the Re-assessment Order
The re-assessment order under Section 147 was issued on March 23, 2026, concerning Crisil Limited's income tax return for FY 2016-17 regarding its merged subsidiaries. The dispute centers around tax computation errors despite the Assessing Officer's acceptance of the company's income declaration.
| Parameter: | Details |
|---|---|
| Assessment Year: | 2017-18 |
| Order Date: | March 23, 2026 |
| Demand Amount: | ₹121.20 crores |
| Authority: | Income Tax Authority |
| Section: | 147 (Re-assessment) |
Nature of the Dispute
According to the company's disclosure, the subsidiaries' income was already merged with Crisil Limited's income and tax was appropriately offered. The Assessing Officer acknowledged that there was no escapement of income from tax and issued a clean order accepting the income offered to tax.
However, the tax computation contained significant errors:
- Unwarranted additions were made to the tax calculation
- Credit for taxes already paid was not properly given
- These computational errors resulted in an incorrect demand order
Company's Response and Financial Impact
Crisil Limited has clarified that there is no immediate impact on the company's financial, operational, or other activities due to this order. The company has outlined its planned course of action to address the erroneous demand.
| Response Strategy: | Action Plan |
|---|---|
| Immediate Step: | Filing rectification application |
| Legal Recourse: | Appeal against the order |
| Financial Impact: | No immediate operational impact |
| Business Operations: | Unaffected |
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI Listing Regulations and SEBI Circular dated January 30, 2026. The company has fulfilled its obligation to inform stakeholders about material developments that could impact investor decisions.
The company secretary, Minal Bhosale, signed the disclosure document, ensuring proper corporate governance procedures were followed in communicating this development to the stock exchanges and investors.
Historical Stock Returns for CRISIL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.86% | -6.61% | -15.32% | -16.75% | -11.29% | +107.16% |
How might this tax dispute affect Crisil's credit rating business and client confidence in the near term?
Could this re-assessment order signal broader scrutiny of merger-related tax computations across the financial services sector?
What potential timeline and costs should investors expect for the rectification and appeal process?
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