Craftsman Automation Limited has informed the Exchange about Action(s) taken or orders passed by the Principal Commissioner of Income Tax, Coimbatore
CRAFTSMAN · price
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The Principal Commissioner of Income Tax (PCIT), Coimbatore has passed an order dated 20th March 2026 under Section 263 of the Income Tax Act, directing the Assessing Officer to disallow Rs. 5.30 Crore from the returned income for Assessment Year 2022-23. The actual tax demand will arise only after the Assessing Officer passes a separate order following the PCIT's directions. The company has stated that it believes the disallowance is not sustainable and plans to take appropriate legal recourse to challenge it. Craftsman Automation has clarified that it does not foresee any material impact on its financials, operations, or other activities, noting that the obligation has been fully discharged.
The order itself does not yet create a tax liability and the company is contesting it, so near-term impact on shareholders is expected to be limited. However, if the challenge fails, a tax demand of up to Rs. 5.30 Crore plus potential interest could materialize, which is small relative to a large-cap company but worth monitoring.