Crompton Greaves has received a demand notice from the Income Tax Department for Assessment Year 2024-25, totaling ₹42,60,90,820, comprising tax and interest. The demand arises from disallowances related to ESOP expenses, warranty provisions, and intangible asset depreciation. The company maintains a reasonable expectation of a favorable outcome at the appellate level and plans to file an appeal within the prescribed timeline.
Notice of Tax Demand Received
Crompton Greaves Consumer Electricals Limited has been served a notice of demand under Section 156 of the Income Tax Act, 1961, by the Assessment Unit, Income Tax Department, Mumbai. The notice, dated March 27, 2026, pertains to the Assessment Year AY 2024-25.
Total Demand Amount
The total demand imposed by the authority is substantial, amounting to ₹42,60,90,820/-. This total is broken down into:
- Tax Component: ₹34,53,31,204/-
- Interest Component: ₹8,07,59,616/-
Basis for the Demand
The demand has been raised due to the alleged disallowance of several key expenditures and claims made by the Company:
- Disallowance of ESOP expenses.
- Disallowance of the claim of provisions against warranty and after-sale service expenses.
- Disallowance of depreciation on Intangible Assets.
- Disallowance of payments made to non-filers of Income Tax Return.
Company’s Outlook and Appeal Plans
The potential monetary impact quantified is ₹42,60,90,820/-. However, the company has stated that there is no material impact on the financials, operations, or other activities of the company at this stage. Based on an assessment of prevailing law and consultant advice, the management reasonably expects a favourable outcome at the Appellate level. Consequently, the Company will file an appeal before the National Faceless Appeal Centre (NFAC) within the stipulated timeline under Section 249 of the Act.
Source: BSE
