Electrotherm Faces Huge Income Tax Demand of Rs 72.69 Crore; Plans to Challenge Order

Electrotherm (India) Limited, India’s leading company involved in metal fabrication, has recently disclosed that it has received an Income Tax Assessment Order and a demand notice from the Income Tax Department raising a demand of Rs 72.69 crore, including tax liability and interest liability.

Background

Electrotherm stated that the Assessment Unit of the Income Tax Department passed an Assessment Order under Section 147, read with Section 144B, and a demand notice under Section 156 related to the assessment year 2017-18. The order raises a demand of Rs 72,69,05,210, including a net tax liability of Rs 35,52,32,531 and an interest liability of Rs 37,16,72,679.

Key Detail of the Order

Company’s Next Step

The company said that it will consult a legal professional to challenge the assessment order by filing an appeal.

Financial Impact

Even after this hefty demand, Electrotherm, based on its assessment and legal advice, expressed its confidence that the order does not affect the financial, operations or any other activities of the company.

Company’s Disclosure Compliance

Electrotherm has disclosed the above information to both the NSE and BSE under
under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.