The Ramco Cements has provided an update on ongoing material litigations, specifically regarding revenue expenditure treated as capital expenditure and industrial promotion assistance treated as taxable income. The Income Tax Department has appealed to the Madras High Court regarding the assessment year 2015-16, with a disputed tax value of ₹0.48 crores. Additional disputes of similar nature, amounting to ₹8.10 crores and ₹21.10 crores, are also pending with the Madras High Court.
Income Tax Litigation Update
This announcement details updates to ongoing material litigations as previously disclosed on August 14, 2023.
Disputed Revenue Expenditure
The Income Tax Department has filed an appeal with the Honourable Madras High Court. This appeal contests an order by the Income Tax Appellate Tribunal (ITAT) issued on April 17, 2025, for the assessment year 2015-16. The core issue involves revenue expenditure that the Income Tax Department has classified as capital expenditure. The disputed tax value in this matter is ₹0.48 crores. The appeal was admitted on November 17, 2025.
Industrial Promotion Assistance
The announcement also addresses the matter of ‘Industrial promotion Assistance treated as taxable income by the income tax department instead of capital receipt’. Disputes of a similar nature for this point and the above-mentioned point are pending with the Honourable Madras High Court, worth approximately ₹8.10 crores and ₹21.10 crores respectively.
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