Crompton Greaves Consumer Electricals has issued an update regarding an appeal filed against an order received from the Office of the Commissioner of Income Tax. The appeal concerns assessment years 2021-22 and 2022-23. The company confirmed the appeal hearing date was March 28, 2026, and noted that demands raised related to disallowance of provision for warranty and after-sales service expenses. The financial impact is estimated at over ₹9.77 crore.
Disclosure Regarding Tax Authority Proceedings
Crompton Greaves Consumer Electricals Limited has provided an update concerning proceedings initiated by tax authorities. The company confirms it has received an order from the Office of the Commissioner of Income Tax (Appeals), National Faceless Appeals Centre, Delhi, pertaining to the assessment years 2021-22 and 2022-23.
Details of the Appeal and Hearing
The matter relates to an appeal filed by the company against the order passed under Section 250 of the Income Tax Act, 1961. The primary issue under review stems from a direction under Section 143(3) of the Income Tax Act, 1961.
Key Events of the Assessment
Date of Hearing: The hearing for the appeal was scheduled for March 28, 2026, at 04:07 PM.
Nature of Demand: The demand raised on account of the disallowance of a provision for warranty and after-sales service expenses, as well as potential eprovision for unrecoverable assets and ESOP expenses.
Financial Impact: The total financial impact related to the potential disallowances is significant, quoted under Tax Invoice numbers: INR 9,77,56,823/- (for warranty/service) and INR 45,38,018/- (for other items).
Company Stance and Outcome
Based on the merits of the case and legal advice, the company maintains the belief that it has a favorable position to contest the ruling. It is currently proceeding with the appeal as planned.
The company further affirmed that there is no material impact on the financials, operations, or other activities resulting from this ongoing matter as of the date of this disclosure, pending the final outcome of the appeal process.
Source: BSE
