Crompton Greaves Consumer Electricals Limited has received an order from the Commissioner of Income Tax (Appeals) regarding a demand related to the 2020-21 assessment year. The dispute involves a disallowance of provisions for warranty and after-sales services. The company plans to contest the decision by filing an appeal with the appellate authorities, maintaining that there is no material impact on its financial position or ongoing operations.
Order Overview
The company received an official order from the Commissioner of Income Tax (Appeals), National Faceless Appeals Centre, on March 31, 2026. This order pertains to an appeal filed by the company concerning the assessment of the financial year 2020-21, originally concluded under Section 143(3) of the Income Tax Act in September 2022.
Financial Implications
The order resulted in a tax demand totaling INR 65,23,167. This demand specifically stems from the tax authorities’ decision to disallow the company’s provision for warranty and after-sales services. Despite the nature of this demand, the company has clarified that the amount does not represent a material impact on its financials, business operations, or other corporate activities.
Future Steps
Based on the prevailing legal framework and professional advice from its consultants, the company is preparing to challenge the order. Management has expressed a strong expectation of receiving a favorable outcome during the upcoming appellate proceedings.
Source: BSE
