MRF Limited has been penalised a total of ₹55,45,106 by the Deputy Commissioner of Income Tax, Ministry of Finance, Government of India. The penalties are related to three separate assessment years and were all received on 23rd March 2026.
For the assessment year 2013-14, the company received a favourable appellate order resulting in a relief of ₹23.06 crores. However, the Commissioner of Income Tax (Appeals) confirmed the disallowance of a provision towards litigation and related disputes to the extent of ₹0.57 crores. Consequently, the Assessing Officer issued a penalty order on 23rd March 2026, imposing a penalty of ₹37,15,438 under Section 271(1)(c) of the Income-tax Act, 1961.
In the case of the assessment year 2015-16, MRF received a favourable appellate order providing a relief of ₹104.92 crores. The appellate order restricted the disallowance under Section 14A to ₹0.10 crores against the original disallowance of ₹34.83 crores made by the Assessing Officer. As a result, a penalty of ₹7,04,476 was levied under Section 271(1)(c) of the Income-tax Act, 1961.
For the assessment year 2016-17, MRF was granted a relief of ₹81.23 crores through a favourable appellate order. However, the Commissioner of Income Tax (Appeals) confirmed the disallowance under Section 14A to the extent of ₹0.16 crores. This led to a penalty of ₹11,25,192 being imposed under Section 271(1)(c) of the Income-tax Act, 1961.
MRF has announced its intention to file appeals with the Commissioner of Income Tax (Appeals) against each of these penalty orders.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).