ISGEC Heavy Engineering announced that its material wholly owned subsidiary, Saraswati Sugar Mills Limited, received an Income Tax Order on March 25, 2026, concerning the Assessment Year 2024-25. The order mandates a tax demand of Rs. 18.80 Crore, including applicable interest, due to the disallowance of certain expenditures. The subsidiary plans to appeal this decision before the Commissioner of Income Tax (Appeals), asserting confidence in its legal grounds for resolution.
Receipt of Income Tax Order by Subsidiary
ISGEC Heavy Engineering Limited has formally intimated the receipt of an adverse order under the Income Tax Act by one of its material wholly owned subsidiaries, Saraswati Sugar Mills Limited. The order, dated March 25, 2026, relates to the Assessment Year 2024-25 (Financial Year 2023-24).
Financial Implications and Demand
The core issue detailed in the order is the disallowance of certain expenditure under the Income Tax Act, 1961. This action has resulted in a mandatory tax demand of Rs. 18.80 Crore, a figure that includes applicable interest. This value represents the expected financial implication arising from the assessment.
Recourse and Company Stance
The subsidiary, Saraswati Sugar Mills Limited, is actively preparing to challenge this ruling. It is in the process of filing an appeal before the Commissioner of Income Tax (Appeals) within the stipulated timelines. The company’s management maintains that it possesses adequate factual and legal grounds to contest the demand and reasonably expects the entire tax liability to be deleted upon conclusion of the appellate process.
Source: BSE
