Ponni Sugars (Erode) Limited has informed the Exchange about receipt of order on Transfer Pricing from Income Tax Department
PONNIERODE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Ponni Sugars has received an order dated March 27, 2026 from the Commissioner of Income Tax (Transfer Pricing), Chennai under Section 263 of the Income Tax Act. The order relates to Assessment Year 2021-22 and sets aside the earlier Transfer Pricing Officer's order on the Arm's Length Price of bagasse transferred internally from the sugar unit to the co-generation unit. CIT-TP has asked the TPO to re-examine this issue and pass a fresh order after following correct legal procedure. The company believes the transfer pricing methodology adopted is not legally tenable but admits the matter has a material financial impact. Ponni Sugars plans to take legal action to challenge this order.
This is a negative development — the company faces a potentially material tax liability spread over multiple years, though the exact amount is not quantifiable yet. The ongoing legal challenge means the final outcome is uncertain, but the stock could see some pressure due to the unresolved tax exposure.