Century Enka Limited has informed the Exchange regarding ''.Disclosure w.r.t. Order passed by Assessment Unit, Income Tax Department
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Century Enka Limited has received a penalty order from the Income Tax Department's National Faceless Assessment Centre under section 270A of the Income Tax Act for Assessment Year 2020-21. The penalty amount is Rs. 38,29,964, which is 200% of the underlying tax of Rs. 19,14,982, levied on alleged underreporting of income. The demand arose from a difference between the income filed in the company's return and the income assessed under section 143(3). The company has stated it will contest the demand and does not expect any material financial impact on its operations or financials.
The penalty is relatively small compared to a typical large-cap company's earnings and the company has indicated it will fight the order, so the immediate impact on shareholders is likely limited. However, the final outcome of the contest could still lead to a modest outflow if the demand is upheld.