IFCI Limited has received an order under Section 154 of the Income-Tax Act, 1961, leading to an additional demand of Rs. 13.64 Crore due to a reduction in brought-forward losses. The assessment order is being contested, and the company has sufficient MAT credit to offset the demand, anticipating no significant financial impact. The order was received on January 06, 2026.
Order Under Income-Tax Act
IFCI Limited has announced the receipt of an order under Section 154 read with Section 143(3) of the Income-Tax Act, 1961. This order, received on January 06, 2026, relates to an adjustment in the computation of income for Assessment Year 2019-20.
Financial Implications and Mitigation
The order has resulted in an additional demand of Rs. 13.64 Crore, stemming from a reduction in the amount of brought-forward losses. IFCI Limited is currently challenging the assessment order before the Commissioner of Income Tax (Appeals) [CIT(A)].
To address this demand, the company has already secured a stay against the initial demand and is in the process of filing for a stay against this additional demand. Moreover, IFCI Limited confirms it possesses sufficient Minimum Alternate Tax (MAT) credit to offset any outstanding demand arising from this order. Therefore, at this time, the company expects no material financial impact, given its ability to absorb the additional demand with existing MAT credit. Consequently, no operational disruption or other adverse effects are anticipated.
Source: BSE
