Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015-Update on ltigation-Material Subsidiary, N.N. Financial Services Private Limited
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Nimbus Projects Ltd informed the stock exchange that the income tax reassessment proceedings against its material subsidiary N.N. Financial Services Private Limited for Assessment Year 2013-14 have been held invalid and quashed. The Income Tax Department had originally raised additions of Rs.26.60 crore alleging receipt of accommodation entries. The subsidiary challenged the reassessment before the Delhi High Court, which directed the Assessing Officer to re-examine the matter. Pursuant to the High Court's direction, on March 5, 2026, the Assessing Officer passed an order holding that the Section 148 notice was beyond the limitation period and the reassessment was not sustainable in law. The Rs.26.60 crore addition has been deleted, and the assessed income has been revised to Nil, with no financial impact on Nimbus Projects or its subsidiary.
This is a positive development for shareholders as a potential tax liability of Rs.26.60 crore on the material subsidiary has been fully set aside with no financial impact on the company. The removal of this litigation overhang may be viewed favorably by the market.