Sharda Motor Industries Ltd has received a significant relief in its income tax appeal, with the Commissioner of Income-Tax (Appeals) passing a favorable order that substantially reduces the company's outstanding tax demand for assessment year 2022-23.

Appellate Order Details

The company received the appellate order dated March 27, 2026, from the Commissioner of Income-Tax (Appeals)-27, New Delhi, through email on March 30, 2026. This order was passed under section 250 of the Income Tax Act, 1961, continuing the proceedings from previous intimations, with the latest being February 26, 2026.

Financial Impact and Demand Reduction

The appellate order is expected to provide substantial financial relief to the company. According to management's assessment, the outstanding tax demand for assessment year 2022-23 will be significantly reduced following the CIT(A) order.

Next Steps and Management Action

Following the favorable appellate order, the company will approach the Assessing Officer to pass the appeal effect order in accordance with the directions issued under section 250 by the Commissioner of Income-Tax (Appeals). Management expects this process to formalize the reduction of the tax demand from Rs 4.30 crore to Rs 5.22 lakhs.

The company has indicated its intention to file an appeal before the Income Tax Appellate Tribunal against the remaining demand of Rs 5.22 lakhs, suggesting continued efforts to minimize tax liabilities through available legal remedies.

Regulatory Compliance

Sharda Motor Industries informed both BSE (Scrip Code: 535602) and NSE (Symbol: SHARDAMOTR) about this development in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure was made pursuant to SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The communication was signed by Iti Goyal, Assistant Company Secretary and Compliance Officer, ensuring proper corporate governance and transparency in reporting material developments to stakeholders.

Sharda Motor Industries Ltd has announced receiving favorable appellate orders from the Commissioner of Income-Tax (Appeals), marking a significant development in the company's ongoing income tax proceedings. The orders, dated February 23, 2026, cover multiple assessment years and are expected to substantially reduce the company's outstanding tax liability.

Appellate Orders Details

The company received orders under Section 250 of the Income Tax Act, 1961, from The Commissioner of Income-Tax (Appeals)-27, New Delhi, covering six assessment years. The orders were received on February 25, 2026, through the IT Portal and represent the continuation of previous proceedings, with the latest intimation being from October 08, 2025.

Financial Impact and Demand Reduction

The appellate orders are expected to provide substantial financial relief to the company. According to management's assessment, the outstanding tax demand will see a dramatic reduction following the Commissioner's orders.

The company stated that it will approach the Assessing Officer to pass the appeal effect order in line with the orders under Section 250 passed by the Commissioner of Income-Tax (Appeals). This process is expected to formalize the reduction in the outstanding demand amount.

Next Steps and Future Actions

Sharda Motor Industries has outlined its strategy for addressing the remaining tax liability. The company plans to file an appeal before the Income Tax Appellate Tribunal against the balance demand of Rs 6.11 Cr, indicating its intention to further contest the remaining liability.

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company's Assistant Company Secretary and Compliance Officer, Iti Goyal, signed the regulatory filing.

Regulatory Compliance

The company has fulfilled its disclosure obligations under the listing regulations by providing detailed information about the appellate orders. The filing includes comprehensive details about the nature of the orders, financial impact, and the company's planned course of action for the remaining proceedings.