Tax Assessment / Regulatory Action
Shree Cement Receives Income Tax Assessment Order for FY23
NSE
shreecem
BSE
500387
Shree Cement Limited informed stock exchanges that it has received a Final Assessment Order under Section 143(3) read with Section 144C(3) of the Income Tax Act, 1961 for FY2022-23. The assessment resulted in a tax demand of approximately ₹153.47 crore including interest.
PRICE-SENSITIVE TRIGGER
Event: Receipt of final income tax assessment order from Income Tax Authority.
Type: Tax Assessment / Regulatory Action
Impact: Negative
Immediate Effect: The assessment order creates a tax demand of ₹153.47 crore, although the company stated that the demand is expected to be adjusted against pending refunds and may not materially impact operations.
Key Metrics:
- Tax demand raised: ₹153.47 crore (including interest)
- Assessment pertains to: FY2022-23
- Order passed under:
- Section 143(3)
- Read with Section 144C(3) of Income Tax Act, 1961
- Demand expected to be adjusted against pending refunds receivable by the company
Highlight:
- Shree Cement stated that based on legal advice and precedents from appellate forums, it expects the demand to substantially subside after remedial proceedings.
What Happened ?
Shree Cement received a Final Assessment Order from the Assistant Commissioner of Income Tax, Central Circle, Ajmer pertaining to FY2022-23.
The order follows an earlier draft assessment order communicated in April 2026. According to the company, the tax demand arose due to certain disallowances made during the assessment proceedings.
The company clarified that it is pursuing legal remedies and does not expect any material operational impact at this stage.
Key Details
Assessment Order Details:
- Assessment order received on 15 May 2026
- Issued by:
- Assistant Commissioner of Income Tax
- Central Circle, Ajmer
- Pertains to:
- Financial Year 2022-23
Tax Demand Breakdown:
- Total demand raised:
- ₹153.47 crore including interest
- Demand linked to:
- Disallowances made during assessment proceedings
Company Response:
- Company is evaluating remedial legal actions
- Legal counsel has been engaged
- Management expects substantial relief based on earlier appellate rulings
- Pending tax refunds are expected to offset the current demand
Risk Analysis
Key Risks:
- Ongoing tax litigation uncertainty
- Potential cash flow impact if refunds are delayed
- Possibility of prolonged appellate proceedings
- Regulatory and compliance-related scrutiny
Worst Case Scenario:
- If appellate relief is not granted or refund adjustments are delayed, the company could face additional financial outflows and litigation costs.
Risk Level: Medium
Company Commentary
- Shree Cement stated it is taking remedial actions available under law
- Management indicated that based on past appellate orders, the demand is expected to substantially subside
- The company clarified that there may not be any material impact on financials, operations, or other activities
Official Exchange Filing: Shree Cement Limited