Income Tax: Allcargo Terminals and Its Subsidiary Face Rs 53.03 Crore Demand Over Section 80IA Deduction

Allcargo Terminals Limited has informed the stock exchange that it and its Unlisted Wholly owned subsidiary, Speedy Multimodes Limited, have received an Assessment Order from the Income Tax Department under Section 158BC of the Income-tax Act, 1961. The order was received by the company on May 13, 2026.

The order has raised a tax demand amounting to Rs 49.34 crore on the company and Rs 3.69 crore on its subsidiary under Section 156 of the Income Tax Act 1961, resulting in an aggregate demand of Rs 53.03 crore. This demand pertains to the block period between April 01, 2018, and April 05, 2025.

The demand of Rs 49.34 crore has originated from a disallowance of deduction availed by the company under Section 80IA of the Income-tax Act, 1961, for Assessment Years 2023-24 to 2025-26. The company discloses that the present case pertains to the eligibility of tax deductions for its Container Freight Station (CFS) business, which has been a long-standing interpretational issue.

It was further added that a similar case involving its predecessor entity has already been decided favourably at the appellate stages, including major relief granted by the Commissioner of Income Tax (Appeals).

The company believes that the deduction claimed by them was justified as per the law and was duly supported by judicial precedents. Consequently, the company is looking to adopt possible legal remedies. It further clarified that the present action does not have any impact on its financial, business and operational activities.

The company has disclosed the aforesaid information to the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) via an Intimation dated May 14, 2026, in pursuance of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.