CRISIL Limited has notified the stock exchanges regarding a re-assessment order received for its Income Tax Return concerning the Assessment Year (AY) 2017-18. While the Assessing Officer initially agreed with the tax position, an error in computation led to an incorrect demand order. The company faces a demand of INR 121.20 Crores. CRISIL plans to file both a rectification application and an appeal against this order.
Disclosure of Tax Re-assessment Order
CRISIL Limited issued a formal disclosure concerning a re-assessment order received from the Income Tax Authority, relating to its tax return for the Assessment Year (AY) 2017-18. This communication was mandated under relevant listing regulations and dated March 24, 2026.
Details of the Dispute
The core issue stems from a Re-assessment order issued under Section 147 on March 23, 2026, focusing on the financial activities of the company’s merged subsidiaries for the Financial Year (FY) 2016-17. Although the Assessing Officer (AO) confirmed there was no escapement of income and accepted the tax offered, the AO subsequently made unwarranted additions during the final computation.
Crucially, the AO failed to grant the company credit for taxes already paid, leading directly to an erroneous final demand notice.
Financial Implication and Company Action
The financial implication of this order is a calculated demand raised by the authorities amounting to INR 121.20 Crores. CRISIL stated clearly that there is no immediate impact on its ongoing financial, operational, or other corporate activities as a result of this demand.
The Company Secretary confirmed that management intends to contest this finding. CRISIL will be filing both a rectification application and a formal appeal against the assessment order to resolve the discrepancy.
Source: BSE
