Shree Cement has received a Final Assessment Order from the Income Tax Authority for the financial year 2022-23. The order determines a tax demand of ₹153.47 crore, inclusive of interest, following certain disallowances. The company has stated that this demand will be adjusted against existing pending refunds. Management remains optimistic that the demand will eventually subside, citing favorable outcomes in similar matters from previous years, and expects no material impact on its operations.
Details of the Assessment
On May 15, 2026, Shree Cement Limited was served with a Final Assessment Order issued by the Assistant Commissioner of Income Tax. This order pertains to the financial year 2022-23 and follows a previously issued draft assessment order. The tax authorities have finalized a demand amounting to ₹153.47 crore, which includes applicable interest charges arising from specific financial disallowances.
Financial Impact and Resolution
The company has confirmed that the total demand is not expected to result in a cash outflow as it will be adjusted against outstanding income tax refunds currently due to the firm. Regarding the broader financial outlook, the company is actively pursuing all available legal remedies and remedial actions as advised by its legal counsel.
Future Outlook
Looking at the precedence of orders passed by authorities and various appellate forums in prior years, the company maintains a positive outlook. Shree Cement anticipates that this demand will be successfully challenged and ultimately subside. Consequently, the company does not foresee any adverse impact on its financial health, ongoing operations, or other business activities.
Source: BSE
