SRF Limited has responded to a technical error in an assessment order for the 2022-23 tax year. While the order incorrectly demands Rs 327.44 crore, the company maintains that the actual addition to taxable income is only Rs 30.54 crore. Management has proactively filed a rectification application and an appeal to resolve the discrepancy, stating that the order is not legally sustainable and poses no immediate impact on company operations.
Context of the Tax Dispute
SRF Limited recently received a final assessment order under section 143(3) of the Income Tax Act for the 2022-23 assessment year. The order contains a significant technical error that resulted in an inflated demand of Rs 327.44 crore. This amount includes an interest component of Rs 101.77 crore. The company has clarified that the underlying dispute involves additions to taxable income amounting to Rs 30.54 crore, which the management considers incorrect.
Management Response and Legal Recourse
To address the error, the company initiated formal proceedings by filing a rectification application with the Assessing Officer on March 10, 2026. Furthermore, as a precautionary measure to protect its interests, the company filed an appeal before the Income Tax Appellate Tribunal (ITAT) on March 19, 2026.
Operational Impact
The company maintains that the assessment order is not legally sustainable. Consequently, the management expects the total demand to be reversed following the rectification process. SRF Limited has confirmed that this matter has no immediate impact on the company’s financial, operational, or other business activities, as the situation stems from a technical oversight rather than a fundamental business issue.
Source: BSE
