The New India Assurance Company has announced that it has received an assessment order from the Income Tax Department for the assessment year 2023-24, resulting in a significant tax impact. The order, issued under section 143(3) of the Income Tax Act, 1961, disallows certain expenses claimed by the company, leading to an impact of ₹1,89,37,08,470.
The company has stated its intention to appeal the order before the National Faceless Appeal Centre (NFAC) or explore other legal options. This decision comes in light of the criteria specified under the SEBI LODR (Listing Obligations and Disclosure Requirements) Regulations, 2015, which necessitates the disclosure of such orders.
The assessment order was received on 23rd March 2026, and the company has indicated that the disallowed expenses will be recorded as a contingent liability in its financial statements. This move reflects the company’s proactive approach in addressing the financial implications of the order while seeking a resolution through legal channels.
The New India Assurance Company, a government undertaking, remains committed to resolving the matter and ensuring compliance with all regulatory requirements.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).