Regulatory / Tax Dispute
SRF Reports Income Tax Demand of ₹327 Cr; Files Appeal Before ITAT
NSE
srf
BSE
503806
SRF Limited has disclosed an income tax demand of ₹327.44 crore for AY 2022-23, arising due to a technical error, with the company filing rectification and appeal before ITAT while stating no immediate impact on operations.
PRICE-SENSITIVE TRIGGER
Event: Income tax demand and litigation disclousre
Type: Regulatory / Tax Dispute
Impact: Neutral
Immediate Effect: No immediate financial or operational impact as per company
Key Metrics
- Tax Addition: ₹30.54 crore
- Total Demand: ₹327.44 crore
- Interest Component: ₹101.77 crore
Highlights
Total Demand: ₹327.44 crore
What Happened ?
SRF Limited disclosed that the Income Tax Department has issued a final assessment order for AY 2022-23, resulting in a demand of ₹327.44 crore.
The company stated that the demand arose due to a technical error, and it has:
- Filed a rectification application
- Filed an appeal before the Income Tax Appellate Tribunal (ITAT)
Key details
Nature of Dispute
- Issued under Section 143(3) of Income Tax Act
- Additions made in taxable income: ₹30.54 crore
- Disproportionate demand due to technical issue
Company Action
- Rectification application filed (March 10, 2026)
- Appeal filed before ITAT (March 19, 2026)
Management View
- Demand is not legally sustainable
- Expected to be reversed upon rectification
Impact Assessment
- No immediate impact on financials
- No operational disruption
Risk Analysis
Key Risks
- Delay in legal resolution
- Adverse ruling in appeal process
- Cash flow impact if liability crystallizes
Worst Case Scenario
Full demand upheld → financial impact on profitability
Risk Level: Medium
Company Commentary
- Demand arose due to technical error
- Legal remedies already initiated
- Management confident of reversal
- No immediate impact on business
Official Exchange Filing: SRF Limited