Madhya Bharat Agro Products Limited has informed the Exchange about Action(s) initiated or orders passed
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Madhya Bharat Agro Products Limited received a tax demand notice of ₹7.20 crore from the Income Tax Department's Assessment Unit on March 31, 2026, related to Assessment Year 2024-25. The demand arises from a scrutiny assessment where the tax authority added to the company's taxable income due to outstanding trade payables to Micro and Small Enterprises (MSEs) that were not paid within legally prescribed time limits. The company contests this addition, stating it does not align with applicable legal provisions. Management has stated the claims are not maintainable and the company plans to file a rectification petition and explore legal remedies. No penalty or sanction has been imposed in this order.
The ₹7.20 crore tax demand creates uncertainty and potential cash flow pressure, though the company asserts no material financial impact is expected. The ongoing dispute and potential litigation may involve legal costs, but resolution in the company's favour could negate the impact entirely.