Please find attached disclosure under Regulation 30 of SEBI(LODR) Regulations, 2015
Awaiting price reaction for this filing.
Aarti Industries received an income-tax assessment order dated 14 May 2025 (retrieved on 16 May) for FY 2021-22 (AY 2022-23) from the Office of the Assistant Commissioner of Income Tax, Mumbai. The order disallows Rs. 632 Crs of deductions claimed under Chapter VI-A and Section 10AA (related to proceeds from a cancelled long-term contract tied to its Dahej SEZ unit) and adds Rs. 15 Crs treating the MEIS subsidy as a revenue receipt, leading to a total demand of Rs. 163.30 Crs including interest. The company says the department wrongly ignored available MAT credit and that, after rectification under Section 154, the actual demand should fall to around Rs. 8 Crs. It is filing a rectification application followed by an appeal, and states there is no material impact on its financials or operations, supported by judicial precedents and legal opinions.
Near-term impact is limited — the company expects the headline Rs. 163.30 Crs demand to drop to about Rs. 8 Crs after rectification, and it is contesting the order in appeal, so no immediate hit to earnings is anticipated. Investors should watch for updates on the rectification and appeal outcome, as an adverse ruling could meaningfully affect future tax outflows.