Cera Sanitaryware Limited has received a significant tax demand from the Income Tax Department, amounting to ₹27.96 crore. The demand arises from an assessment order dated 26th March 2026, concerning the company’s income tax return for the financial year 2023-24.
The assessment order, issued under section 143(3) read with section 144B of the Income Tax Act, 1961, includes certain disallowances made by the Assessing Officer. As a result, a demand under section 156 of the Income Tax Act, 1961, has been raised against Cera Sanitaryware.
In addition to the demand, the Assessing Officer has issued a show cause notice for a penalty under section 274 read with section 270A of the Income Tax Act, 1961. This further complicates the company’s tax situation.
Cera Sanitaryware, however, believes that the demand lacks merit and intends to challenge the order. The company is in the process of filing an appeal against the demand, asserting that it is not maintainable.
Despite the substantial amount involved, Cera Sanitaryware has stated that there is no material impact on its financial, operational, or other activities. The company remains confident in its position and is taking steps to address the issue through the appropriate legal channels.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).