CG Power and Industrial Solutions Limited has received an updated stay order from the Income Tax Department regarding a revised tax demand of ₹236.73 crore for Assessment Year 2022-23. The stay is granted until the disposal of the company’s appeal by the CIT(A), subject to the payment of 20% of the total demand, with a portion to be paid in installments. This order provides clarity on the company’s financial obligations related to this tax dispute.
Updated Tax Demand Stay Granted
CG Power and Industrial Solutions Limited has announced receiving an updated stay order concerning a revised tax demand. The order, dated 7th September 2026, pertains to a tax demand of ₹236,73,81,955 for the Assessment Year 2022-23, which was raised through a Revisionary Assessment Order dated 20th April 2026.
Stay Conditions and Appeal Process
The updated stay order provides that the tax demand will remain stayed until the company’s appeal is disposed of by the Commissioner of Income Tax (Appeals) [CIT(A)]. However, this stay is conditional upon the company fulfilling certain payment obligations. Specifically, 20% of the total tax demand must be paid. Of this amount, ₹30 crore is to be paid in five installments, as detailed in the order. The remaining balance of the disputed demand will be payable subject to the conditions outlined in the order, including potential refund adjustments.
Background of the Tax Dispute
This updated stay follows an earlier disclosure regarding an original assessment order for AY 2022-23, issued on 28th February 2024, which raised a demand of ₹188,78,91,580. The company had previously applied for a stay on this demand on 2nd May 2024, which was partially accepted, requiring a deposit of ₹4,89,38,029 with the balance stayed pending the appeal. The subsequent Revisionary Assessment Order increased the demand significantly.
Source: BSE
