Discosure of penalty imposed by Income Tax Department
Awaiting price reaction for this filing.
The Income Tax Department has imposed a penalty of Rs. 1.74 crore on Sir Shadi Lal Enterprises under Section 271(1)(c) of the Income Tax Act, 1961, equivalent to 100% of the tax allegedly sought to be evaded for Assessment Year 2015-16. The penalty stems from an addition of Rs. 5.59 crore to the company's assessed income, with Rs. 5.50 crore relating to alleged non-consideration of an amount in computing long-term capital gains. The case has a long history — the company originally filed a return declaring a loss of Rs. 44 crore, which was later revised upward by the Assessing Officer, upheld by CIT(A), and partly allowed by the ITAT on 16 July 2025. The company says it is contesting the penalty in appeal and is hopeful of full relief.
The Rs. 1.74 crore penalty is a contingent liability being contested in appeal, so it is unlikely to cause an immediate cash outflow if the company wins. However, it adds to the company's existing tax disputes and may create short-term uncertainty for shareholders until the appeal is resolved.