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.

CG Power & Industrial Solutions has received an updated stay order from the Income Tax Department regarding its ongoing tax demand dispute, requiring additional payments to maintain protection against the substantial assessment.

Updated Stay Order Details

The company received a revised stay order dated 29th January, 2026 from the Income Tax Department concerning the balance amount of its tax demand case. The updated order mandates specific payment terms and conditions for continued stay protection.

Background of Tax Demand Case

The tax dispute originated from a Final Assessment Order for Assessment Year 2021-22, which the company received on 25th July, 2025. The original demand and subsequent legal proceedings have followed a structured timeline.

Original Stay Order Terms

The initial stay order granted on 22nd August, 2025 established the foundation for the current proceedings. Under the original terms, the company was required to pay 20% of the total tax demand as a condition for the stay.

Original Payment Structure:

• Initial payment requirement: Rs. 42 crores
• Payment method: Five instalments
• Stay coverage: Until ITAT appeal disposal
• Additional conditions: Subject to refund adjustments

Current Payment Obligations

The updated stay order reflects adjustments made after determining the actual tax refund amount. The revised payment structure accounts for the refund adjustment that was finalized subsequent to the original order.

Key Financial Adjustments:

• The additional payment of Rs. 28,13,23,489 represents the balance amount after accounting for tax refund adjustments
• The tax refund was determined at Rs. 23,41,95,879 as per the original order dated 22nd August, 2025
• The new payment schedule requires completion in three instalments instead of the original five

Legal Proceedings Status

The company's appeal against the Final Assessment Order remains pending before the Income Tax Appellate Tribunal, Mumbai. The appeal challenges the additions and disallowances made in the assessment order that resulted in the substantial tax demand.

Current Legal Position:

• Appeal filed on 8th August, 2025 before ITAT Mumbai
• Stay applications accepted by Deputy Commissioner of Income Tax
• Updated stay order ensures continued protection during appeal process
• No settlement proceedings currently applicable

The company has made the requisite disclosures under Regulation 30 of the SEBI Listing Regulations and relevant SEBI Master Circular requirements, ensuring transparency with stakeholders regarding this significant tax matter.