Tax Demand / Regulatory Order
UltraTech Cement Receives ₹808.78 Crore Income Tax Demand Order
NSE
ultracemco
BSE
532538
UltraTech Cement received an assessment order from the Income Tax Department for AY 2023-24 involving a tax demand of ₹808.78 crore including interest. The company plans to file an appeal and stated that it does not expect any material operational impact.
PRICE-SENSITIVE TRIGGER
Event: Receipt of income tax assessment order from tax authority
Type: Tax Demand / Regulatory Order
Impact: Negative
Immediate Effect: The tax demand introduces legal and financial uncertainty pending appellate proceedings
Key Metrics:
- Tax Demand Amount: ₹808.78 Crore
- Assessment Year: AY 2023-24
- Authority: Deputy Commissioner of Income-tax Central Circle, Mumbai 1(4)
- Relevant Law: Section 143(3) of Income Tax Act, 1961
- Order Receipt Date: 05-05-2026
Highlight:
- Demand includes interest component.
- Disallowances relate to tax holiday claims, TP adjustments, and ESOP expenses.
- Company intends to challenge the order through appellate process.
- Management stated no expected impact on financial operations.
What Happened ?
UltraTech Cement informed the exchanges that it has received an assessment order from the Deputy Commissioner of Income-tax Central Circle, Mumbai 1(4) under Section 143(3) of the Income Tax Act for Assessment Year 2023-24.
The order involves a tax demand of ₹808.78 crore including interest arising from certain additions and disallowances made by the assessing officer. The company stated that it believes it has strong legal grounds to contest the order and plans to file an appeal before the Commissioner of Income Tax (Appeals).
key highlights
Tax Order Details:
- Demand relates to Assessment Year 2023-24.
- Tax order issued under Section 143(3) of the Income Tax Act.
- Additions/disallowances include tax holiday claims.
- Transfer pricing adjustments form part of the assessment.
- ESOP-related expense disallowances also included.
- Company believes most issues are covered by favorable appellate precedents in prior years.
- Appeal to be filed within prescribed timelines.
- Company stated no expected impact on ongoing financial operations.
Note:
- Large tax disputes are relatively common in major corporate groups and often undergo multi-level appellate review before final resolution.
Risk Analysis
Key Risks
- Adverse appellate rulings may increase financial outflows.
- Extended litigation could continue over multiple years.
- Regulatory disputes may create temporary sentiment pressure.
- Interest liabilities may increase if dispute remains unresolved.
Worst Case Scenario
- If appellate relief is not obtained, the company may face substantial cash outflows and additional interest liabilities.
Risk Level: Medium
Company Commentary
- Company received assessment order from Income Tax authority.
- Demand amount stands at ₹808.78 crore including interest.
- Company believes it has strong legal grounds to challenge the order.
- Appeal to be filed before Commissioner of Income Tax (Appeals).
- Management does not expect impact on company’s financial operations.
Official Exchange Filing: UltraTech Cement Limited