UltraTech Cement Receives Rs.808.78 Crore Income Tax Demand for Assessment Year 2023-24
UltraTech Cement Limited received an assessment order under Section 143(3) of the Income Tax Act, 1961, for Assessment Year 2023-24, with a tax demand of Rs.808.78 crores including interest, from the Deputy Commissioner of Income-tax Central Circle, Mumbai 1(4). The order, received on 5th May, 2026, involves additions and disallowances related to tax holiday claims, transfer pricing adjustments, and ESOP expenses. The company intends to appeal before the Commissioner of Income Tax (Appeals) within prescribed timelines and does not anticipate any impact on its financial operations.
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UltraTech Cement Limited has disclosed the receipt of an assessment order from the Deputy Commissioner of Income-tax Central Circle, Mumbai 1(4), under Section 143(3) of the Income Tax Act, 1961, for Assessment Year 2023-24. The order, received on 5th May, 2026, carries a total tax demand of Rs.808.78 crores, inclusive of interest. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details of the Assessment Order
The following table summarises the key particulars of the order as disclosed by the company:
| Parameter: | Details |
|---|---|
| Issuing Authority: | Deputy Commissioner of Income-tax Central Circle, Mumbai 1(4) |
| Order Type: | Assessment Order under Section 143(3) of the Income Tax Act, 1961 |
| Assessment Year: | 2023-24 |
| Tax Demand (incl. interest): | Rs.808.78 crores |
| Date of Receipt: | 5th May, 2026 |
Grounds of Addition and Disallowance
The assessing officer has made certain additions and disallowances in the assessment order. The key areas cited include:
- Tax holiday claims
- Transfer pricing (TP) adjustments
- ESOP (Employee Stock Option Plan) expenses
UltraTech Cement has stated that it believes it has strong legal grounds to nullify the entire demand, noting that most of the grounds are covered by favourable orders of appellate authorities in its own case for past years.
Company's Response and Expected Impact
The company has indicated that it is in the process of filing an appeal before the Commissioner of Income Tax (Appeals) against the said order within the prescribed timelines. UltraTech Cement has further stated that it does not expect any impact on the financial operations of the company as a result of this order. The disclosure was signed by Dhiraj Kapoor, Company Secretary and Compliance Officer, on 6th May, 2026.
Historical Stock Returns for UltraTech Cement
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.61% | +3.14% | +9.27% | +0.85% | +2.50% | +84.36% |
How have appellate authorities historically ruled on UltraTech Cement's transfer pricing disputes, and what precedents could influence the outcome of this appeal?
Could recurring tax disputes of this scale signal broader regulatory scrutiny of the cement sector's tax holiday claims and ESOP expense treatments?
How might a prolonged appeals process impact UltraTech Cement's cash flow management and capital allocation strategy over the next 2-3 years?
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