Cummins India has received an order from the Income Tax Department imposing a penalty of Rs. 1,19,10,452. The penalty was levied under Section 27(1)(c) of the Income Tax Act, 1961, without the company being given an opportunity to be heard. Cummins India plans to appeal the order to the Appellate authority.
Penalty Order Received
Cummins India has been notified of an order passed by the Assessment Unit of the Income Tax Department, resulting in a penalty of Rs. 1,19,10,452. The penalty was imposed under Section 27(1)(c) of the Income Tax Act, 1961. The company states that the order was issued without providing an opportunity to present its case.
Appeal to be Filed
Cummins India intends to challenge this penalty order. The company will be filing an appeal with the Appellate authority. The penalty imposed is solely related to an underlying adjustment during assessment proceedings, which has been contested, and the related appeal is already pending before the Hon’ble Income Tax Appellate Tribunal.
Minimal Financial Impact
The company has stated that the levied penalty is not expected to have a material impact on the company’s financials or operational activities.
Source: BSE