Intimation on receipt of interim order from Hon''ble High Court of Madras is enclosed
PONNIERODE · price
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Ponni Sugars received an interim order dated 27.04.2026 from the Hon'ble High Court of Madras in connection with a Writ Petition filed by the company. The dispute stems from a Transfer Pricing order passed by the CIT-TP in March 2026, which set aside an earlier TPO order for AY 2021-22 regarding the Arm's Length Price (ALP) of inter-unit transfer of bagasse from the sugar unit to its co-generation unit. While the court directed the TPO to pass appropriate orders, it ruled that the effect and operation of those orders shall remain subject to the final outcome of the Writ Petition and without prejudice to the company's rights. The company received the order on May 26, 2026 from its legal counsel. Financial implications cannot be precisely quantified at this stage but are expected to have multiple consequential impacts over several years.
The interim order provides temporary protection to the company by keeping the TPO's orders suspended pending the final writ petition outcome, reducing immediate financial risk. However, the underlying tax dispute for AY 2021-22 remains unresolved and could still result in additional tax liability.