We herewith intimate that the company has received an intimation of Order dated March 31, 2025 with respect to Assessment Year 15-16. The Order is in favor to the company.
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Awaiting price reaction for this filing.
Eastern Treads Ltd received an order dated March 31, 2025 from the Principal Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961, concerning Assessment Year 2015-16. The dispute involved a misstatement of Rs. 48.24 lakh, which the company had classified as 'Provision for bad or doubtful advances' instead of 'Bad debts written off', leading to an alleged short levy of tax of about Rs. 30.68 lakh. The revision proceeding has now been concluded and the order has been passed in favor of the company. As a result, the potential tax liability linked to this old dispute has been eliminated.
Positive for shareholders as it removes a longstanding tax uncertainty and potential liability from the books. The financial impact is small (under Rs. 50 lakh) but the clarity removes a negative overhang on the stock.