Piotex Industries Clarifies Timely Disclosure of ₹5.06 Crore Income Tax Demand
Piotex Industries has clarified the timeline of its ₹5.06 crore income tax demand disclosure, stating the order dated December 02, 2025 was received by the company on December 17, 2025, with prompt disclosure made the same day to BSE, addressing exchange concerns about potential regulatory delays.
*this image is generated using AI for illustrative purposes only.
Piotex Industries Limited , a company listed on the BSE SME platform, has provided clarification regarding the disclosure timeline of a significant income tax demand order, following an inquiry from the exchange about potential disclosure delays.
Income Tax Demand Order Details
The company has disclosed receiving a demand order from the Income Tax Department, Ministry of Finance, Government of India, under Section 156 of the Income Tax Act. The key details of this development are:
| Parameter: | Details |
|---|---|
| Demand Amount: | ₹5.06 crores |
| Assessment Year: | 2024-25 |
| Order Date: | December 02, 2025 |
| Company Receipt Date: | December 17, 2025 |
| Disclosure Date: | December 17, 2025 |
| Section: | 156 of Income Tax Act |
The income tax demand has arisen due to two primary reasons. First, an addition under Section 41(1) of the IT Act amounting to ₹34.85 lakhs. Second, and more significantly, an addition due to disallowance under Section 43B(h) of the IT Act for delay in payment to MSME creditors, totaling ₹16.23 crores.
Disclosure Timeline Clarification
Following BSE's inquiry about potential delays in disclosure under Regulation 30 of SEBI Listing Regulations, Piotex Industries has provided detailed clarification on the timeline of events:
| Event: | Date |
|---|---|
| Demand Order Issued: | December 02, 2025 |
| Order Received by Company: | December 17, 2025 |
| BSE Disclosure Made: | December 17, 2025 |
| BSE Clarification Sought: | December 18, 2025 |
| Company Response: | December 18, 2025 |
The company has emphasized that there was no delay or inadvertent lapse in making the required disclosure under Regulation 30 of the SEBI Listing Regulations, as the disclosure was made promptly on the same day the demand order was received.
Company's Response Strategy
Piotex Industries has indicated that the demand is factually incorrect and not tenable in law. The company has outlined a two-pronged approach to address this matter:
- Filing a rectification application with the tax authority
- Appealing before the appellate authority
The management has stated that there shall be no material impact on the financials or operations of the company, as they believe the demand lacks merit.
Recent Financial Performance
The company had reported its unaudited financial results for the half-year ended September 30, 2025, showing mixed performance:
| Particulars: | H1 2025-26 | H1 2024-25 | YoY Change |
|---|---|---|---|
| Revenue from Operations: | ₹69.69 cr | ₹68.60 cr | +1.59% |
| Net Profit: | ₹10.45 cr | ₹49.36 cr | -78.83% |
Despite marginal revenue growth, the company experienced a significant decline in net profit compared to the same period last year. The company continues to operate under accounting standards prescribed under section 133 of the Companies Act 2013, being exempted from mandatory IND-AS adoption due to its SME exchange listing.
Historical Stock Returns for Piotex Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +6.94% | -11.69% | -28.85% | -46.34% | -3.65% | -67.63% |
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