LG Electronics India Faces Rs 8.23 Crore Tax Penalty, Plans Legal Challenge:

LG Electronics India Faces Rs 8.23 Crore Tax Penalty, Plans Legal Challenge LG Electronics India Ltd. has informed stock exchanges that it has received a penalty order from the Income Tax Department. The order, passed on June 19, 2026, levies a penalty of Rs 8,23,53,445 on the company under Section 271(1)(c) of the Income Tax Act, 1961.

Also Read

JK Tyre Receives Rajasthan Stamp Duty Order, Plans Appeal Against Rs 4 Crore Penalty and Interest

The penalty pertains to the financial year 2013-14 and is a result of a tax dispute over the taxability of incentives received by the company from the Uttar Pradesh Government. The disputed amount in the tax adjustment was approximately Rs 24,22,87,278. The issue goes back to October 2025, when the Income Tax Appellate Tribunal (ITAT) upheld the tax revisions made by the Income Tax Department. LG Electronics India later contested this ruling before the Delhi High Court, where the case is still pending a final judgment. After the tax adjustment ruling, the Income Tax Department imposed a penalty of Rs 8,23,53,445 on the company. However, LG Electronics India said the penalty will not have any significant impact on its finances or day-to-day business operations.

Also Read

Partnership Firm Faced Rs. 3.10 Lakh Penalty After Switching from Mercantile to Cash Accounting; ITAT Condones Delay and Restores Appeal

The company also said that it has a strong case, noting that similar penalty proceedings for financial years 2002-03, 2003-04, and 2006-07 were decided in its favor by the ITAT. The company also stated that it is currently planning to file an appeal against the latest penalty order before the appropriate authority.