Chambal Fertilisers & Chemicals Limited has received an Income Tax penalty order of Rs 1,35,24,064 from the Assessment Unit of the Income Tax Department. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Penalty Details and Background

The penalty has been imposed under Section 270A of the Income Tax Act, 1961, for an alleged wrong claim of education cess deduction in the company's income tax return for Assessment Year 2020-21. The order was received by the company on March 6, 2026.

Legal Basis for Original Claim

The company's original deduction claim was based on a favorable ruling from the Rajasthan High Court, Jaipur Bench, in its own case. In Appeal No. 52/2018 for Assessment Year 2009-10, decided on July 31, 2018, the court held that Education Cess and Secondary & Higher Education Cess paid along with income tax does not fall within the ambit of "tax" under Section 40(a)(ii) of the Income Tax Act, 1961, and is therefore allowable as deduction.

Retrospective Amendment Impact

The Finance Act, 2022 introduced a retrospective amendment that reversed the aforementioned court ruling. Following this legislative change, Chambal Fertilisers surrendered its claim for deduction of Education Cess and Secondary & Higher Education Cess and paid the applicable tax amount.

Company's Response and Financial Impact

The company has stated that there is no impact on its financial, operational, or other activities, except for the penalty amount mentioned above. Chambal Fertilisers believes it has a strong case to contest the penalty order on merits and has indicated its intention to challenge the same at the appropriate appellate forum.

Regulatory Compliance

This disclosure was made in compliance with SEBI regulations, ensuring transparency with stakeholders regarding material developments that could affect the company's operations or financial position.

CM Airtime Promotion LLP , a promoter group entity, has executed its largest acquisition to date in Chambal Fertilisers & Chemicals Ltd, purchasing 200,000 equity shares through open market operations on March 2, 2026. This substantial acquisition represents a significant increase in the entity's investment commitment and demonstrates strong confidence in the fertilizer company's growth prospects.

Latest Major Share Acquisition

The recent transaction involved the purchase of 200,000 equity shares, marking the entity's most substantial single acquisition in the company. This acquisition represents a 0.050% increase in ownership stake, significantly larger than previous incremental purchases.

Updated Shareholding Position

Following this major acquisition, CM Airtime Promotion LLP's total shareholding has increased substantially to 1,649,830 shares. The entity's stake has grown from 1,449,830 shares to 1,649,830 shares, representing a 0.412% ownership position in the fertilizer company.

Company Capital Structure

Chambal Fertilisers & Chemicals Ltd maintains a stable capital structure with no changes resulting from this transaction. The company's equity base remains consistent at 400,652,297 equity shares, providing a clear framework for calculating ownership percentages.

Regulatory Compliance

The disclosure has been made in full compliance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, specifically under Regulation 29(2). CM Airtime Promotion LLP, registered with LLP Identification Number AAE-6579, has notified both the National Stock Exchange of India Limited and BSE Limited about this acquisition. The entity operates from its registered office at Mezzanine Floor, Hindustan Times House, Kasturba Gandhi Marg, New Delhi, ensuring transparency in its shareholding activities and adherence to regulatory requirements.