Orient Cement Limited has informed the Exchange about General Updates
ORIENTCEM · price
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Awaiting price reaction for this filing.
Orient Cement has received a final income tax order for Assessment Year 2022-23, raising a tax demand of Rs. 19.62 crore. The demand stems from a transfer pricing adjustment of Rs. 41.22 crore related to the transfer of power from its Captive Unit to its Manufacturing Unit. In addition to the demand, the company may also face a penalty under Section 270A of the Income Tax Act. This order follows an earlier order dated January 22, 2025 under Section 92CA(3) for the same assessment year. The company has stated that it has a strong case on merit and plans to file an appeal before the Income Tax Appellate Authorities within the prescribed timelines.
The Rs. 19.62 crore tax demand is a contingent liability — it will not immediately hit profits unless the company loses the appeal. Investors should track the appeal outcome, as an unfavourable ruling combined with the Section 270A penalty could result in a meaningful cash outflow.