Chambal Fertilizers & Chemicals Limited has informed the Exchange about Action(s) taken or orders passed
CHAMBLFERT · price
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Awaiting price reaction for this filing.
Chambal Fertilizers has received an order from the Income Tax Department's Assessment Unit levying a penalty of Rs. 96.86 lakhs under Section 271(1)(c) of the Income Tax Act, 1961. The penalty relates to two disputed tax deductions claimed in the return for AY 2011-12: (1) treating expenditure on constructing an anicut over the Parwan River as revenue expenditure instead of capital, and (2) claiming a deduction for the diminished value of Fertilizer Bonds before they were actually sold. The company states there is no material impact on its financial or operational activities beyond the penalty amount. It plans to challenge the order at an appropriate appellate forum, citing that it has a good case on merits.
The financial impact is limited to the penalty of about Rs. 96.86 lakhs, which is small relative to Chambal's overall size and is unlikely to affect operations or shareholder value materially. The stock is unlikely to see significant movement, though investors should watch for updates on the appeal outcome.