Jyothy Labs has reported receiving an Income Tax assessment order for AY 2024-25, which initially raised a demand of ₹110.64 Crore. However, on the same date, March 30, 2026, a subsequent rectification order was passed, revising the entire demand, including interest, to Nil. The initial demand stemmed from computational errors and recurring issues for which the company already holds favorable past rulings. No material financial impact is anticipated.
Income Tax Order Received and Revised
Jyothy Labs Limited issued an intimation on March 31, 2026, regarding an Income-tax assessment order received for the Assessment Year 2024-25. The initial order, passed under Section 143(3) of the Income-tax Act, 1961 on March 30, 2026, had raised a total demand of ₹110.64 Crore, which included interest amounting to ₹21.84 Crores.
Immediate Rectification Nullifies Demand
Crucially, on the same date (March 30, 2026), the Income-tax Department issued a rectification order under Section 154. Based on a suo-motu correction by the department, the entire tax demand, along with all applicable interest, was subsequently fully nullified, resulting in a revised demand of Nil.
Basis of Initial Demand
The initial demand, which was later reversed, was attributed primarily to two factors:
- Prima facie computational errors leading to an initially incorrect demand.
- Recurring issues for which the company has previously secured favorable orders from both the Hon’ble Income Tax Appellate Tribunal and the Hon’ble Commissioner of Income Tax (Appeals) in earlier assessment years.
Future Action and Financial Outlook
Despite the rectification, the company confirmed it is proceeding with the process of filing an appeal concerning the order, specifically relating to the aforementioned recurring issues. Nevertheless, Jyothy Labs stated that it does not anticipate any material impact on its financials, operations, or other activities resulting from this sequence of tax orders.
Source: BSE
