Polycab India has successfully reduced its income tax demand from ₹327.45 crore to ₹57.58 crore following a rectification order from the Income Tax Department. The original demand was raised due to disallowances and additions totalling ₹41.87 crore, as per an assessment order under Section 143(3) of the Income Tax Act, 1961, received on 3rd March 2026.
The company identified computational and clerical errors in the initial assessment and filed a rectification application under Section 154 of the Act. The revised demand, however, still includes certain non-granted advance tax credits, which Polycab India believes can be further rectified. The company is in the process of filing an application for rectification before the jurisdictional Assessing Officer.
Polycab India, in consultation with its tax advisors, maintains that the revised tax demand is not sustainable under law and plans to appeal against the additions made in the assessment order. The company does not anticipate any material impact on its financial position or operations due to this tax order.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).