Tax Assessment
EPACK Durable Receives Rectification Order; Income Tax Demand Reduced from ₹29.03 Crore to ₹5.89 Crore
NSE
epack
BSE
544095
EPACK Durable Limited has received a rectification order from the Income Tax Department relating to Assessment Year 2023-24. Following the rectification proceedings, the tax demand against the company has been reduced significantly from ₹29.03 crore to ₹5.89 crore. The company has already filed an appeal against the original assessment order and intends to continue pursuing legal remedies.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Rectification Order from Income Tax Department.
Type: Tax Assessment
Impact: Positive
Immediate Effect: The rectification order has resulted in a substantial reduction in the disputed tax demand from ₹29.03 crore to ₹5.89 crore, lowering the immediate financial exposure arising from the assessment order.
Key Metrics:
- Original Tax Demand: ₹29.03 crore
- Revised Tax Demand After Rectification: ₹5.89 crore
- Reduction in Tax Demand: ₹23.14 crore
- Demand Reduction (%): Approximately 79.7%
- Assessment Year: AY 2023-24 (FY 2022-23)
- Date of Communication: June 11, 2026
Highlight:
- The Income Tax Department reduced EPACK Durable’s disputed tax demand by ₹23.14 crore, bringing the liability down from ₹29.03 crore to ₹5.89 crore.
What Happened ?
EPACK Durable informed exchanges that the Office of the Deputy Commissioner of Income Tax has passed a rectification order under Sections 154/144/144B of the Income Tax Act, 1961.
The matter relates to an assessment order disclosed by the company on March 23, 2026, under which a tax demand of ₹29.03 crore had been raised. Following a rectification application filed by the company and subsequent review by the tax authorities, the demand has now been revised downward to ₹5.89 crore.
The company had already challenged the original assessment order before the Commissioner of Income Tax (Appeals), and the appeal remains pending.
Key Details
Rectification Order Update:
- Communication received from the Office of the Deputy Commissioner, Income Tax Department.
- Rectification order issued under Sections 154/144/144B of the Income Tax Act, 1961.
- Pertains to Assessment Year 2023-24 (Financial Year 2022-23).
- Original assessment demand stood at ₹29.03 crore.
- Rectification application was filed by the company before the jurisdictional assessing authority.
- Tax authorities accepted certain submissions made by the company.
- Revised tax demand reduced to ₹5.89 crore.
- No penalty, restriction, or sanction has been imposed pursuant to the communication.
- No specific non-compliance or aberration has been identified in the rectification order.
Note:
- Although the rectification order has materially reduced the disputed amount, the appellate proceedings against the original assessment order continue and remain subject to adjudication.
Risk Analysis
Summary:
- The rectification order significantly lowers the company’s immediate tax exposure. However, the matter has not reached final closure as appellate proceedings remain pending before the Commissioner of Income Tax (Appeals).
Key Risks:
- Remaining disputed tax demand of ₹5.89 crore continues to be under litigation.
- Final outcome depends on the appellate authority’s decision.
- Potential future tax adjustments cannot be ruled out until the matter is conclusively resolved.
- Regulatory and legal timelines may extend the resolution period.
Worst Case Scenario:
- If appellate proceedings are unsuccessful, the company may ultimately be required to settle the remaining disputed tax demand along with any applicable statutory obligations.
Risk Level: Low
Company Commentary
- The company had already filed an appeal against the original assessment demand of ₹29.03 crore.
- Following rectification proceedings, the tax demand has been substantially reduced.
- EPACK Durable will continue pursuing the appeal before the Commissioner of Income Tax (Appeals).
- The company intends to pursue all available remedies in accordance with applicable law.
Official Exchange Filing: EPACK Durable Limited
