Orient Cement has received a significant tax demand from the Income Tax Authority amounting to ₹52,40,34,900 for the Assessment Year 2023-24. The demand primarily arises from a Transfer Pricing Adjustment of ₹54,33,14,302 related to the transfer of power from the company’s Captive Unit to its Manufacturing Unit. The company believes the order is erroneous and subject to rectification.
The order, dated 31 March 2026, was issued under sections 143(3) and 144C(3) of the Income Tax Act, 1961. Orient Cement has indicated its intention to file an appeal against the order before the competent Income Tax Appellate Authorities within the prescribed timelines.
Upon rectification, the company expects the disallowance of deduction claimed under section 80IA of the Income Tax Act to be restricted to ₹9,15,22,051, as initially claimed in its return of income. This rectification is anticipated to reduce the tax demand significantly to ₹3,19,81,466.
Orient Cement is taking appropriate steps to address the situation and ensure compliance with the necessary legal procedures.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).