Finolex Industries has received a penalty order under Section 271(1)(c) of the Income Tax Act, 1961, for Assessment Year 2016–17, with a demand for ₹18,02,385. The penalty relates to disallowance of expenditure under Section 14A read with Rule 8D. The company is initiating appellate proceedings against the order, which does not materially impact its operations.
Details of Penalty Order
Finolex Industries Limited has announced the receipt of a penalty order from the Income Tax Department. The order, issued under Section 271(1)(c) of the Income Tax Act, 1961, pertains to Assessment Year 2016-17.
Financial Impact and Response
The penalty amount totals ₹18,02,385. The penalty stems from the disallowance of expenditure under Section 14A read with Rule 8D of the Income Tax Act. Finolex Industries is pursuing appellate proceedings to challenge the penalty order. The company stated that this order does not have a material impact on the operational activities.
Background of the Order
The penalty proceedings are related to earlier assessment orders passed under Section 143(3) of the Income Tax Act. The order was dated September 29, 2025, and received by the company via email on September 30, 2025.
Source: BSE
