Tega McNally Minerals Limited (TMML), a wholly owned subsidiary of Tega Industries, has received an income tax assessment order totaling ₹13,78,92,170. This demand relates to the 2017-18 assessment year, which precedes the company’s acquisition of the subsidiary. Management has stated that there is no material impact on the company’s current financial or operational performance and is actively taking steps to appeal the order.
Background on the Tax Demand
The Assistant Commissioner of Income Tax has issued an order against Tega McNally Minerals Limited (TMML) concerning the period between April 2016 and March 2017. The assessment covers disallowances and additions related to specific expenditures for the 2017-18 financial assessment year. The total demand, inclusive of interest, is ₹13,78,92,170.
Pre-Acquisition Context
It is important to note that the demand pertains to a timeline significantly earlier than March 2023. In March 2023, Tega Industries successfully acquired TMML following a resolution plan approved by the National Company Law Tribunal. Consequently, this financial claim is rooted in the entity’s history prior to the change in ownership.
Financial Outlook and Next Steps
The company has confirmed that the order has no material impact on its current financial health, ongoing operations, or future business activities. Furthermore, the management team has reported success with similar matters in other assessment years. Tega Industries is currently preparing to file an appeal against this order to seek appropriate relief through the formal legal process.
Source: BSE
