Craftsman Automation Limited has been notified of an order dated March 20, 2026, from the Principal Commissioner of Income Tax, Coimbatore. The order, issued under Section 263 of the Income Tax Act, directs the Assessing Officer to disallow a sum of Rs. 5.30 Crore concerning the returned income for Assessment Year 2022-23. The company stated that the liability will crystallize only upon the AO’s subsequent order, and it does not foresee any material impact on operations.
Tax Authority Issues Revision Order
Craftsman Automation Limited formally informed the stock exchanges on March 21, 2026, regarding a significant directive received from the Principal Commissioner of Income Tax (PCIT), Coimbatore. This directive pertains to the revision of the Assessment Order for the Assessment Year 2022-23.
Details of the Disallowance
The PCIT issued an order under Section 263 of the Income Tax Act, 1961, directing the Assessing Officer (AO) to disallow an amount totaling Rs. 5.30 Crore from the returned income filed by the company. The order was formally pronounced on March 20, 2026.
Financial and Operational Outlook
The actual liability for this tax demand will only materialize after the AO passes a subsequent order following the PCIT’s directions. Importantly, the management has assessed the situation and stated that they do not foresee any material impact on the company’s financials, operations, or other activities due to this specific order.
Company Stance and Recourse
In the appended annexure providing required details, the company affirmed its belief that the stated disallowance is not sustainable. Craftsman Automation Limited has confirmed its intention to pursue appropriate legal recourse against the PCIT’s order.
Source: BSE
