After the appellate order dated February 23, 2026, the company's management believes the demand will be reduced to Rs 6.11 crore by the assessing officer.
Nidhi | Feb 27, 2026 |
Sharda Motor Industries Gets Major Tax Relief; Tax Demand Likely to Drop
Sharda Motor Industries Ltd., a leading Indian manufacturer of automotive components, has recently informed the stock exchanges about the receipt of appellate orders from the Commissioner of Income-Tax (Appeals) related to several assessment years. As per the Sharda Motor, the orders may reduce the company’s outstanding tax liability.
Key Details of Order
| Particulars | Details |
| Authority | Commissioner of Income-Tax (Appeals)-27, New Delhi |
| Order Section | Section 250 of the Income Tax Act, 1961 |
| Order Date | February 23, 2026 |
| Date of Receipt | February 25, 2026 (via IT Portal) |
| Assessment Years Covered | AY 2018-19 to AY 2021-22 and AY 2023-24 to AY 2024-25 |
| Pending Year | AY 2022-23 |
| Total Earlier Demand | Rs 84.89 crore |
Background of the Case
The dispute is related to income tax demands raised by the department for Assessment Years (AY) 2018-19 to 2024-25. The total outstanding demand for all these years was Rs 84.89 crore.
Sharda Motor had challenged these demands and filed appeals before the Commissioner of Income Tax (Appeals). As per the latest information, the company has now received the orders of CIT(A) dated February 23, 2026, for the six assessment years. As per the company, the appeal for AY 2022-23 is still pending.
Company Expects Major Relief
According to the company’s disclosure, the total outstanding tax demand for the six assessments was Rs 84.89 crore. After the appellate order dated February 23, 2026, the company’s management believes the demand will be reduced to Rs 6.11 crore by the assessing officer.
Further Appeal
Sharda Motor said that it will challenge the remaining demand of Rs 6.11 crore before the Income Tax Appellate Tribunal (ITAT).
Company’s Disclosure Compliance
The above disclosure was made by Sharda Motor to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) under Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations).
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