Aditya Infotech Secures Major Relief in Income Tax Appeal for AY 2019-20

Aditya Infotech Limited has achieved a significant victory in its ongoing income tax litigation, receiving substantial relief from the Commissioner of Income Tax (Appeals) for Assessment Year 2019-20. The favorable order substantially reduces the company's tax liability and marks a major development in the dispute that originated from an assessment order dated September 30, 2021.

Major Relief in Tax Appeal

The Commissioner of Income Tax (Appeals) has substantially allowed the company's appeal, providing significant relief on the original tax demand. The order received on January 15, 2026, addresses the assessment made under section 143(3) of the Income Tax Act for alleged additional income.

Parameter:	Original Amount	Relief Granted	Net Addition
Additional Income Alleged:	₹40.38 crores	₹36.78 crores	₹3.60 crores
Original Tax Demand:	₹18.96 crores	Substantial reduction	To be assessed
Amount Pre-deposited:	₹3.80 crores	-	-

Background of the Litigation

The dispute originated when the Assessing Officer raised a tax demand of approximately ₹18.96 crores, including interest, based on alleged additional income of ₹40.38 crores for Assessment Year 2019-20. The company challenged this assessment order dated September 30, 2021, by filing an appeal before the Commissioner of Income Tax (Appeals).

As a precautionary measure, the company had already deposited ₹3.80 crores to secure a stay of demand until the disposal of the appeal. This strategic move ensured business continuity while the legal proceedings were underway.

Order Details and Next Steps

The Commissioner's order, received through email on January 15, 2026, at 18:56 IST, carries the DIN number ITBA/APL/M/250/2025-26/1084805822(1). The order allows deletions aggregating to ₹36.78 crores from the original addition, resulting in a net addition of only ₹3.60 crores.

The company maintains that the remaining ₹3.60 crores represents legitimate expenses allowable under the Income Tax Act. Consequently, Aditya Infotech intends to file an appeal before the appropriate authority to challenge this residual addition.

Financial Impact Assessment

According to the company's regulatory filing, the demand and penalty have no material impact on its financials or operational activities. The substantial relief obtained through the appeal process significantly reduces the potential financial burden on the company.

The final tax amount, including interest and penalty on the reduced addition of ₹3.60 crores, is yet to be assessed by the assessing officer. Given that the company has already deposited ₹3.80 crores, it appears well-positioned to handle any residual liability.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The announcement was signed by Company Secretary and Compliance Officer Roshni Tandon and will be hosted on the company's website at www.adityagroup.com for stakeholder access.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.04%	-1.06%	-10.82%	+28.07%	+28.07%	+28.07%

Aditya Infotech Limited has disclosed receiving a significant customs penalty order from the Commissioner of Customs Chennai-II, involving allegations of incorrect duty exemption claims on imported 4G routers. The company made this disclosure under Regulation 30 of SEBI Listing Regulations on January 15, 2026.

Order Details and Financial Impact

The Order-In-Original No. 117308/2026 dated January 13, 2026, was received by the company on January 14, 2026, through email. The comprehensive penalty structure includes multiple components totaling ₹30.86 crores excluding interest.

Component:	Amount (₹ Crores)
Differential Custom Duty:	10.33
Penalty u/s 114A:	10.33
Redemption Fine u/s 125(1):	4.00
Additional Penalty u/s 114AA:	4.00
Personnel and CHA Penalty u/s 112(a):	2.20
Total Penalty:	30.86

Nature of Alleged Violations

The customs department has alleged incorrect availment of concessions under Customs Exemption Notification No. 57/2017 and No. 24/2005 on import of 4G routers. According to the order, the company cleared 4G routers with NIL Duty plus 18% IGST, treating them as exempt items.

However, the department contends that these items qualify as "Devices for accessing cellular Internet using 4G LTE" and fall under the exclusion list of notification no 57/2017. The department believes these should be assessed under CTI 8517 6290 with:

Basic Customs Duty (BCD): 20%
Social Welfare Surcharge (SWS): 10%
Integrated Goods and Services Tax (IGST): 18%

Company's Response and Preparatory Measures

Demonstrating proactive compliance measures, Aditya Infotech had already deposited ₹6 crores against potential duty liability before the issuance of the order. This advance deposit reflects the company's awareness of the ongoing customs investigation.

The company has expressed its intention to file an appeal before the appropriate authority against the order. Aditya Infotech believes that the levied duty and related penalties are exempted under the Customs Act, 1962, indicating confidence in its original classification and duty treatment of the imported 4G routers.

Operational and Financial Assessment

According to the company's disclosure, apart from the penalty amount, there is no material impact expected on the company's financials. The management has stated that the order will not affect operational activities or other business functions of the company.

The disclosure has been made available on the company's website at www.adityagroup.com , ensuring transparency with stakeholders and regulatory compliance under SEBI guidelines.