UltraTech Cement has announced the receipt of an assessment order for Assessment Year 2023-24 from the Deputy Commissioner of Income-tax. The order raises a tax demand of ₹808.78 crore, which includes interest. The company remains confident in its legal standing and is preparing to challenge the order, noting that it expects no material impact on its financial operations.
Details of the Tax Demand
UltraTech Cement Limited confirmed that it received an assessment order under Section 143(3) of the Income Tax Act, 1961, on May 5, 2026. The order concerns the fiscal assessment year 2023-24 and includes a total financial demand of ₹808.78 crore, inclusive of applicable interest charges.
Basis of Disallowances
The assessing officer issued the demand following specific additions and disallowances related to various claims, including tax holiday benefits, transfer pricing (TP) adjustments, and employee stock option (ESOP) expenses.
Corporate Response and Financial Outlook
Despite the order, the company asserts that it holds strong legal grounds to nullify the entire demand. UltraTech Cement highlighted that a majority of the points raised by the assessing officer are consistent with issues resolved in the company’s favor by appellate authorities in past years. The company is currently in the process of filing a formal appeal before the Commissioner of Income Tax (Appeals) within the mandated time frame. Management has confirmed that they do not anticipate any adverse impact on the company’s ongoing financial or business operations.
Source: BSE
