The Company has received Notice of demand under Section 156 of the Income Tax Act, 1961
PRAKASHSTL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
The Income Tax Department's Faceless Assessment Unit has issued an assessment order for Assessment Year 2024-25 (Financial Year 2023-24) against Prakash Steelage Limited, raising a tax demand of Rs. 49.29 crore including applicable interest under Section 156 of the Income Tax Act, 1961. The demand arises from disallowances of certain expenditure and deductions (reversal of provisions) claimed by the company. The company received the order on March 23, 2026, and plans to file an appeal before the higher appellate forums within the prescribed timelines. Management believes it has strong factual and legal grounds to contest the demand and expects the entire claim to be deleted, with no expected impact on financial operations.
Short-term negative sentiment is likely as a Rs. 49.29 crore tax demand is material for the company. However, since the company is contesting and expects a favorable outcome, any lasting impact on the stock price depends on the appeal result. Investors should monitor the appeal proceedings closely.