Crompton Greaves Consumer Electricals Limited has disclosed receiving an order from the Commissioner of Income Tax (Appeals) confirming an assessment order for Assessment Year 2023-24. The company received the order on 31st March 2026 from the National Faceless Appeals Centre, Delhi, under Section 250 of Income Tax Act, 1961.

Background of the Case

The development follows an earlier assessment order dated 24th March, 2025, passed by the Assessment Unit, Income Tax Department for AY 2023-24. Crompton Greaves had previously informed stock exchanges about this assessment order through an intimation filed on 25th March 2025. Subsequently, the company filed an appeal against the assessment order before the Commissioner of Income Tax (Appeals).

Details of the Appeals Order

The Commissioner of Income Tax (Appeals) has now confirmed the original assessment order passed by the Assessment Unit. The order addresses several key areas of contention between the company and the tax authorities.

Nature of Tax Demands

The order relates to demands arising from specific disallowances made by the tax authorities. The violations or contraventions identified in the order include:

• Disallowance of provision for warranty and after sales services
• Disallowance of depreciation on intangible assets
• Disallowance of ESOP expenses

Financial Impact

The potential financial impact on Crompton Greaves Consumer Electricals amounts to ₹29,91,79,840/-. This total comprises two components:

The company has stated that there is no material impact on the financials, operations, or other activities of the company from this order.

Company's Response and Next Steps

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 has expressed that it reasonably expects a favourable order from the appellate authorities.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring compliance with stock exchange notification requirements. The information was provided in accordance with Para A of Part A of Schedule III of Regulation 30 and SEBI Master Circular dated January 30, 2026.

Crompton Greaves Consumer Electricals Limited has informed stock exchanges about receiving an order from the Commissioner of Income Tax (Appeals) for Assessment Year 2020-21. The company disclosed this development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Income Tax Appeals Order Details

The company received the order from the Commissioner of Income Tax (Appeals), National Faceless Appeals Centre, Delhi, on March 31, 2026, at 3:56 PM. This order pertains to an appeal filed by the company against an assessment order dated September 26, 2022, which was passed under Section 143(3) of the Income Tax Act, 1961.

Nature of Tax Demand

The demand has been raised on account of disallowance of provision for warranty and after sales services. The company has provided detailed information about the violation as required under SEBI regulations, specifically relating to the treatment of warranty provisions in its financial statements.

Financial Impact Assessment

The potential financial impact of this income tax order amounts to INR 65,23,167. However, the company has clarified that there is no material impact on its financials, operations, or other activities. This suggests that while the amount represents a potential liability, it does not significantly affect the company's overall financial position or business operations.

Company's Response Strategy

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 has expressed confidence in receiving a favourable order from the appellate authorities, indicating that management believes the original assessment may have been incorrect or excessive.

Regulatory Compliance

The disclosure was made in compliance with Para A of Part A of Schedule III of Regulation 30 of the SEBI Listing Regulations. The company also referenced SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026, demonstrating adherence to current regulatory requirements for such disclosures.