Fine Organic Industries received a tax penalty notice of approximately ₹56 lakhs regarding their 2016-17 tax filings, with the tax department alleging that the company did not properly disclose some of its income. The company disagrees with this finding and has officially filed an appeal to challenge the penalty, maintaining that the dispute will not have any significant impact on their daily business or overall financial health. The order was received on March 10, 2026, but the company only informed the stock exchanges on April 28, 2026.

The company explained that this delay was “inadvertent and unintentional”. They argued that they needed time to:

1. To have their tax and legal experts thoroughly analyse the notice.

2. Determine if the notice was “maintainable” (i.e., whether the Tax Department’s case is strong enough to stand up in court or before an appellate authority).

Essentially, they delayed the public disclosure to avoid causing unnecessary alarm to shareholders until they had finished their own internal due diligence and decided to move forward with the appeal.