Sattva Engineering Construction receives ₹1.5 lakh tax penalty
Sattva Engineering Construction Limited received a ₹1,50,000 penalty from the Income Tax Department's National Faceless Assessment Centre under Section 271B for Assessment Year 2022-23. The company is reviewing the June 5, 2026 order and considering legal options, including an appeal.
*this image is generated using AI for illustrative purposes only.
Sattva Engineering Construction Limited has received a penalty order from the Income Tax Department – National Faceless Assessment Centre (NFAC) imposing a financial liability of ₹1,50,000 for Assessment Year 2022-23. The order, issued under Section 271B of the Income-tax Act, 1961, was received by the company on June 5, 2026. The penalty arises from non-compliance with requirements prescribed under the Act for the specified assessment year.
The disclosure was submitted to the National Stock Exchange of India in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. R Sekar, Whole-time Director, confirmed the receipt of the communication and stated that the company is currently reviewing the order. The management is evaluating appropriate legal remedies, which may include filing an appeal or representation before the relevant authority if required.
The financial implications of the order are limited to the penalty amount of ₹1,50,000. The company noted that the DIN of the order is 2026202240425919212C. Sattva Engineering Construction has indicated that it will provide further updates in accordance with applicable regulations as necessary.
Details of the Communication
The following table outlines the key particulars of the penalty order received by the company:
| Sr. No. | Particulars | Details |
|---|---|---|
| 1 | Name of the listed company | Sattva Engineering Construction Limited |
| 2 | Type of communication received | Penalty Order / Computation Sheet under Section 271B of the Income-tax Act, 1961 |
| 3 | Date of receipt of communication | 05 June 2026 |
| 4 | Authority from whom communication received | Income Tax Department – National Faceless Assessment Centre (NFAC) |
| 5 | Brief summary of material contents | Penalty of ₹1,50,000 levied in relation to Assessment Year 2022-23 |
| 6 | Period for which communication is applicable | Assessment Year 2022-23 |
| 7 | Expected financial implications | Limited to the penalty amount of ₹1,50,000 |
| 8 | Details of penalty or sanction imposed | Penalty of ₹1,50,000 imposed under Section 271B of the Income-tax Act, 1961 |
| 9 | Action(s) taken by the listed company | Reviewing the order and evaluating legal remedies, including filing an appeal |
Historical Stock Returns for Sattva Engineering Construction
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.10% | +6.48% | -9.67% | -8.13% | -34.95% | -34.95% |
What is the likelihood of Sattva Engineering Construction successfully appealing the penalty order?
Will this penalty trigger any increased scrutiny from tax authorities for other assessment years?
How might this non-compliance issue impact investor confidence in the company's governance standards?
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