Deepak Fertilisers has announced that its material subsidiary, Deepak Mining Solutions Limited (DMSL), has received a demand order from Income Tax Authorities. The demand amounts to ₹3,45,75,555 under section 143(3) of the Income Tax Act, 1961 for the assessment year 2024-25. DMSL intends to challenge this order.
Details of Tax Demand
Deepak Mining Solutions Limited (DMSL), a material subsidiary of Deepak Fertilisers, has received a demand order from the Deputy Commissioner of Income Tax, Central Circle. The order, dated January 29, 2026, was received on February 2, 2026, around 10:32 AM.
Financial Impact and Response
The demand order amounts to ₹3,45,75,555. The issue relates to the disallowance of depreciation on ‘intangible assets’ recorded in the books of accounts for the first time due to the demerger of the TAN business to DMSL, resulting in the tax demand.
The company believes that there is no material financial impact. The company plans to challenge the order at an appropriate forum. Given the previous rulings by the Income-tax Appellate Tribunal in similar cases favoring DMSL, the company believes that the demand is not tenable and is liable to be set aside in appeal.
Source: BSE
