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Awaiting price reaction for this filing.
Bihar Sponge Iron has informed the stock exchange about a fresh compounding application it filed on 6th May 2025 before the Income Tax Authority, in connection with criminal proceedings filed against the company and one of its officials (Mr. RK Sharma) for delay in depositing Tax Deducted at Source for FY 2013-14 and FY 2014-15. The case is being heard at the Economic Offence Court in Ranchi. A previous compounding application filed earlier was rejected because it did not follow CBDT guidelines dated 17 October 2024. The company has now refiled the application as per the correct procedure. The company has stated that there is no material impact on its business operations and, based on legal advice, it expects no significant financial implication from this matter.
This is an ongoing tax compliance issue from over a decade ago, not a new crisis. For shareholders, the key takeaway is that the company believes the financial exposure is limited, though any compounding fee or penalty from the Income Tax Authority remains uncertain until the application is decided.