CG Power & Industrial Solutions Limited has secured relief from the Income Tax Department with a stay order on a substantial tax demand of Rs 33,01,61,769 for Assessment Year 2020-21. The company received the stay order on January 29, 2026, from the Assessing Officer, providing temporary respite while its appeal remains pending.

Stay Order Details

The Deputy Commissioner of Income Tax, Mumbai, accepted the company's stay application and issued an order with reference number ITBA/COM/F/17/2025-26/1085245545(1) on January 28, 2026. Under the terms of the stay order, the company must fulfill specific payment obligations while the majority of the demand remains suspended.

Timeline of Events

The tax dispute originated with the receipt of a Final Assessment Order on November 18, 2025, which raised the substantial tax demand for Assessment Year 2020-21. The company responded promptly by taking legal recourse through multiple channels.

Legal Proceedings

Being aggrieved by the assessment order, CG Power filed an appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, on January 16, 2026. The appeal challenges the additions and disallowances made in the final assessment order. Simultaneously, the company moved an application for stay of tax demand before the Assessing Officer on December 1, 2025.

The stay application was heard by the Deputy Commissioner of Income Tax, Mumbai, who directed the company to deposit the specified amount while keeping the balance demand stayed until the disposal of the appeal pending before the ITAT. This arrangement allows the company to continue its operations without the immediate financial burden of the full tax demand while pursuing its legal remedies.

Regulatory Compliance

The company has made the requisite disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure follows the company's earlier communication dated November 18, 2025, when it first informed the stock exchanges about receiving the final assessment order and the subsequent tax demand.

CG Power & Industrial Solutions Limited has successfully obtained a stay order on a substantial tax demand, providing relief while its appeal process continues before the Income Tax Appellate Tribunal.

Stay Order Details

The company received the stay of tax demand order on January 29, 2026, from the Assessing Officer. The order addresses the tax demand of Rs 365,37,21,581/- that was raised for Assessment Year 2018-19.

Payment Structure Under Stay Order

The stay has been granted subject to specific payment conditions. The company must pay 20% of the tax demand through a structured instalment plan:

• First five instalments: Rs 9,00,00,000 each
• Sixth instalment: Balance amount towards 20% of disputed demand after adjustment of refunds under section 245 of the Income Tax Act, 1961

Background and Timeline

The tax dispute originated from a Final Assessment Order received by the company on November 19, 2025, for Assessment Year 2018-19. Following rectification, the revised tax demand was determined at Rs 3,52,94,04,226.

Appeal Process

Being aggrieved by the assessment order, CG Power filed an appeal before the Income Tax Appellate Tribunal, Mumbai on January 16, 2026. The appeal challenges the additions and disallowances made in the assessment order. The Deputy Commissioner of Income Tax accepted the company's stay application and directed the payment structure mentioned above.

Current Status

The balance demand remains stayed until the disposal of the company's appeal pending before the ITAT. This stay order provides the company with operational flexibility while pursuing its legal remedies through the appellate process. The company has made the requisite disclosure under Regulation 30 of the SEBI Listing Regulations as required for material developments.