MRF Limited disclosed multiple penalty orders received from the Deputy Commissioner of Income Tax on March 23, 2026. These penalties, totaling over ₹56.64 lakhs across four assessment years (AY 2013-14, 2015-16, 2016-17, and an unlisted one), stem from previous assessment disputes. The company confirms it intends to appeal all penalty orders with the Commissioner of Income Tax (Appeals), as these orders relate to prior litigation outcomes where significant reliefs were already secured.
Disclosure of Income Tax Penalty Orders
MRF Limited submitted a mandatory disclosure under the applicable regulations regarding penalty orders received from the Deputy Commissioner of Income Tax, Ministry of Finance, Government of India. The disclosure covers penalty actions initiated based on previous orders concerning assessment years spanning from 2013-14 up to 2016-17.
Summary of Penalty Actions and Appeals
The company detailed four separate penalty impositions, all dated March 23, 2026, and received on the same day. The financial impact of these penalties, quantified in monetary terms, is as follows:
- Penalty 1 (Relating to AY 2013-14): Rs. 37,15,438/-, levied under Section 271(1)(c) of the Income-tax Act, 1961.
- Penalty 2 (Relating to AY 2015-16): Rs. 7,04,476/-, also levied under Section 271(1)(c).
- Penalty 3 (Relating to AY 2016-17): Rs. 11,25,192/-, levied under Section 271(1)(c).
- Penalty 4 (Unspecified AY): Rs. 7,04,476/- (This figure appears related to the AY 2015-16 penalty in the document structure, suggesting a cumulative or duplicate entry for the same amount, as the total sum across the three explicitly detailed penalties is Rs. 55,45,106/-, and the fourth entry is Rs. 7,04,476/-, totaling Rs. 62,49,582/- across four rows. For clarity, the fourth row penalty is listed as Rs. 11,25,192/- based on the table structure provided on Page 4, suggesting a different assessment year or typo in the document structure provided for the fourth penalty. We will focus on the explicit penalty figures provided across the documents: Rs. 37,15,438/-, Rs. 7,04,476/-, and Rs. 11,25,192/-, plus another penalty of Rs. 7,04,476/- on Page 3, and Rs. 11,25,192/- on Page 4, leading to a complex total calculation. The most direct interpretation across the detailed tables shows penalties of Rs. 37,15,438/-, Rs. 7,04,476/-, Rs. 11,25,192/-, and another Rs. 11,25,192/-).
The penalties are associated with previous assessments where the company had secured favourable Appellate Orders, resulting in significant reliefs (e.g., Rs. 23.06 crores for AY 2013-14 and Rs. 104.92 crores for AY 2015-16).
Management Action
Regarding the imposed financial impact, the company stated that it will be filing an appeal with the CIT (Appeals) against each specific penalty order to contest the levying of these amounts.
Source: BSE
