Crompton greaves Consumer Electricals Limited has disclosed receiving an unfavorable order from the Commissioner of Income Tax (Appeals) that confirms a substantial tax demand of ₹68,66,59,820 for Assessment Year 2022-23. The company received this order on April 1, 2026, at 6:32 PM from the National Faceless Appeals Centre, Delhi.

Background of Tax Assessment

The current development follows an assessment order originally passed by the Assessment Unit of the Income Tax Department on March 20, 2024. The company had previously informed stock exchanges about this assessment order through intimations filed on March 21, 2024, and March 23, 2024. Following the initial assessment, Crompton Greaves had filed an appeal with the Commissioner of Income Tax (Appeals) challenging the order.

Details of Tax Demand

The confirmed tax demand comprises multiple components totaling ₹68,66,59,820. The breakdown of this demand includes:

Nature of Disallowances

The tax demand stems from specific disallowances made by the Income Tax Department. The primary areas of contention include:

• Disallowance of provision for warranty and after sales services
• Depreciation claimed on intangible assets
• Employee Stock Option Plan (ESOP) expenses

These disallowances form the basis of the tax demand that has now been confirmed by the appellate authority under Section 250 of the Income Tax Act, 1961.

Company's Response and Next Steps

Despite the unfavorable order from the Commissioner of Income Tax (Appeals), Crompton Greaves Consumer Electricals maintains confidence in its position. The company has indicated its intention to file a further appeal against this order based on the merits of the matter, prevailing law, and advice from tax consultants.

The company has stated that it reasonably expects a favorable order from higher appellate authorities. This suggests that the management believes the disallowances made by the tax authorities are not justified and can be successfully challenged at the next level of appeal.

Financial Impact Assessment

According to the company's disclosure, there is no material impact expected on the financials, operations, or other activities of the company despite the substantial tax demand. This assessment indicates that the company has adequate resources to handle the potential liability and continues to operate normally while pursuing legal remedies.

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding this significant development. Company Secretary and Compliance Officer Rashmi Khandelwal signed the disclosure on April 2, 2026.

Crompton Greaves Consumer Electricals Limited has informed stock exchanges about receiving an income tax appeals order from the Commissioner of Income Tax (Appeals), National Faceless Appeals Centre, Delhi. The order pertains to Assessment Year 2018-19 and follows an appeal filed by the company against an assessment order dated February 15, 2021.

Income Tax Appeal Details

The company received the CIT(A) order under Section 250 of the Income Tax Act, 1961, on March 31, 2026, at 4:00 PM. This order was issued in response to the company's appeal against the original assessment order passed under Section 143(3) of the Income Tax Act, 1961.

Nature of Tax Demand

The demand has been raised on multiple grounds including disallowance of provision for warranty and after sales services, expenditure incurred for earning exempt income, education cess claimed, and reduction in amount claimed under section 80IC. These disallowances form the basis of the tax authority's position in the current appeal order.

Financial Impact and Company Response

The potential financial impact of the order amounts to INR 2,36,32,897. However, the company has clarified that there is no material impact on the financials, operations, or other activities of the company.

Future Course of Action

Based on the merits of the matter, prevailing law, and advice from consultants, Crompton Greaves Consumer Electricals is planning to file an appeal against this order. The company reasonably expects a favourable order from the appellate authorities, indicating confidence in its position on the disputed tax matters.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring compliance with stock exchange notification requirements for material events affecting listed companies.