Kansai Nerolac Paints has received orders from the Income-tax Department related to penalties for Assessment Years 2009-10, 2010-11, and 2011-12. The penalties arise from disallowances/additions made in the respective Assessment Orders. The company intends to appeal these orders, citing relevant records to support its claims. Kansai Nerolac asserts that these penalties will not have a material impact on the company’s financials or operations.
Assessment Year 2009-10 Penalty
The Income-tax Department has imposed a penalty of Rs. 1,05,83,727/- on Kansai Nerolac for Assessment Year 2009-10. This penalty is a result of actions taken under section 271(1)(c) of the Income-tax Act, 1961. The company received the order on 17th September 2025 and relates to disallowances made in the Assessment Order.
Assessment Year 2010-11 Penalty
For Assessment Year 2010-11, a penalty of Rs. 41,06,332/- has been levied. Similar to the previous assessment year, this penalty stems from actions under section 271(1)(c) of the Income-tax Act, 1961. The receipt date for this order was also 17th September 2025, and it is connected to disallowances in the corresponding Assessment Order.
Assessment Year 2011-12 Penalty
The penalty for Assessment Year 2011-12 is significantly higher, amounting to Rs. 5,35,98,190/-. This penalty also falls under section 271(1)(c) of the Income-tax Act, 1961 and was received on 17th September 2025. Like the previous years, the penalty is due to disallowances/additions in the Assessment Order.
Company Response and Impact
Kansai Nerolac plans to appeal against these penalties. The company states it possesses the necessary records and precedence to support its claims. The company maintains that the penalties will not materially affect its financial condition or operations.
Source: BSE
