NewsISGEC Heavy Engineering Subsidiary Receives Rs 18.80 Crore Income Tax Demand for Assessment Year 2024-25ISGEC Heavy Engineering Subsidiary Receives Rs 18.80 Crore Income Tax Demand for Assessment Year 2024-25
ISGEC Heavy Engineering's subsidiary Saraswati Sugar Mills Limited received an income tax assessment order dated March 25, 2026, demanding Rs 18.80 crore for Assessment Year 2024-25. The demand relates to disallowance of certain expenditure under the Income Tax Act, 1961, and includes applicable interest. The subsidiary plans to appeal the order before the Commissioner of Income Tax (Appeals), expressing confidence in its legal position and expecting deletion of the entire tax demand.
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ISGEC Heavy Engineering Limited has disclosed to stock exchanges that its material wholly owned subsidiary, Saraswati Sugar Mills Limited, has received an income tax assessment order involving a significant demand of Rs 18.80 crore. The development was communicated to BSE Limited and National Stock Exchange of India Limited on March 27, 2026, in compliance with SEBI listing regulations.
Tax Assessment Details
The income tax order was issued on March 25, 2026, and received by the subsidiary on March 26, 2026. The assessment pertains to Assessment Year 2024-25, covering Financial Year 2023-24, and was issued under Section 143(3) read with Section 144B of the Income Tax Act, 1961.
| Parameter: | Details |
|---|---|
| Assessment Year: | 2024-25 (FY 2023-24) |
| Tax Demand: | Rs 18.80 crore |
| Order Date: | March 25, 2026 |
| Receipt Date: | March 26, 2026 |
| Issuing Authority: | The Assessment Unit, National Faceless Assessment Centre |
Nature of Dispute
The tax demand stems from the disallowance of certain expenditure under the Income Tax Act, 1961. The Rs 18.80 crore demand includes applicable interest charges. The opposing party in this matter is The Assessment Unit, National Faceless Assessment Centre, and any future proceedings will be conducted before The Commissioner of Income Tax (Appeals).
Company's Response Strategy
Saraswati Sugar Mills Limited is preparing to file an appeal before the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, against the assessment order within the prescribed timelines. The subsidiary maintains confidence in its position, stating it has adequate factual and legal grounds to reasonably substantiate its case.
| Aspect: | Status |
|---|---|
| Appeal Filing: | To be filed within prescribed timelines |
| Appeal Authority: | Commissioner of Income Tax (Appeals), National Faceless Appeal Centre |
| Expected Outcome: | Deletion of entire tax demand |
| Legal Grounds: | Adequate factual and legal basis claimed |
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also published this information on its website at www.isgec.com , ensuring comprehensive stakeholder communication. The intimation was signed by Kalyan Ghosh, Compliance Officer of ISGEC Heavy Engineering Limited, from the company's registered address at A-4, Sector-24, Noida-201301, Uttar Pradesh.
Historical Stock Returns for Isgec Heavy Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.48% | +0.79% | +2.85% | +2.21% | -15.00% | +59.53% |
How might this Rs 18.80 crore tax demand impact ISGEC Heavy Engineering's consolidated financial statements and cash flow in the upcoming quarters?
Could this assessment indicate broader scrutiny of sugar industry expenditure claims, potentially affecting other sugar mill subsidiaries in the sector?
What provisions has ISGEC likely made in its books for contingent tax liabilities, and will additional provisioning be required?
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