Garware Hi-Tech Films Limited has received an order from the Income Tax Department demanding ₹18.37 crore related to Assessment Year 2020-21. The company contends that the demand is erroneous, noting that critical tax credits (MAT of ₹15.12 crore) were omitted and procedural natural justice was violated. The company plans to file a rectification application, asserting strong grounds to oppose the demand.
Receipt of Income Tax Demand Order
Garware Hi-Tech Films Limited has formally intimated the stock exchanges regarding the receipt of a significant communication from the Income Tax Department. The document, received via email on March 30, 2026, relates to an order issued under Section 154 and a subsequent notice of demand totaling ₹18.37 crore under Section 156 of the Income-Tax Act, 1961.
Basis of Assessment Year and Communication Details
The demand pertains specifically to the Assessment Year 2020-21. The original order causing this demand was dated March 10, 2026, but was only received by the Company on March 30, 2026.
Company’s Position and Grounds for Dispute
The management of Garware Hi-Tech Films Limited firmly believes that the demand of ₹18.37 crore is incorrect and possesses strong grounds to challenge the order. Key reasons cited for opposing the demand include:
- Failure to provide prior notice or an opportunity of being heard (violating the Principle of Natural Justice).
- Exclusion of the Minimum Alternate Tax (MAT) credit of ₹15.12 crore during computation.
- An erroneous addition amounting to ₹1.41 crore.
Planned Action and Financial Impact Assessment
The company has declared that the claims are not maintainable against it and, therefore, the issue is not expected to have a material financial impact. Management has confidence in the merits of its case and intends to file a rectification application. Based on a preliminary assessment, the Company is confident of achieving a favourable outcome at the appellate stage.
Source: BSE
