P N Gadgil Jewellers Limited has announced receiving assessment orders under the Income Tax Act for the Assessment Years 2021-22, 2022-23, and 2023-24. The total demands raised across these three years amount to approximately ₹6.55 crore, primarily due to disagreements over royalty expense deductions and additions under specific tax sections. The company strongly disputes these demands, asserting they are not sustainable, and is in the process of filing appeals against all orders.
Receipt of Tax Assessment Orders
P N Gadgil Jewellers Limited confirms the receipt of assessment orders from the Income Tax Authority concerning the Assessment Years 2021-22, 2022-23, and 2023-24. The orders were received on March 31, 2026, pertaining to orders dated March 30, 2026. These assessments were conducted under Section 143(3) read with Section 147 of the Income Tax Act, 1961.
Details of Demands Raised
The demands raised by the Deputy Commissioner of Income Tax, Central Circle 1(3), Pune, for each Assessment Year are summarized below:
- Assessment Year 2021-22: A demand of ₹2.26 crore was raised due to non-acceptance of the claim for deduction related to royalty expenses and additions under Section 69A.
- Assessment Year 2022-23: A demand of ₹2.29 crore was raised due to the non-acceptance of royalty expense claims, disallowance under Section 40(a), and additions under Section 69A.
- Assessment Year 2023-24: A demand of ₹2.00 crore was raised due to non-acceptance of royalty expense claims, disallowance under Section 40(a), and other additions under Section 37.
Total demands across the three years approximate ₹6.55 crore.
Company Position and Appeal Process
The company has conducted an internal assessment and firmly believes that the claims/demands raised against it are not sustainable in law and are defendable on the facts of the case. Consequently, the company is actively engaged in the process of filing appeals against all three orders before the appropriate appellate authority under the provisions of the Income Tax Act, 1961.
Financial Impact Assessment
Based on the internal assessment, the company currently does not expect these intimations to have any material financial impact. This expectation is based on the strong conviction that the adjustments are not sustainable in law.
Regulatory Compliance Note
This disclosure has been furnished in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015, along with requirements specified in recent SEBI Master Circulars dated January 30, 2026, and February 25, 2025.
Source: BSE
