Update on order received from Principal Commissioner of Income Tax, Chennai
RML · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Rane (Madras) Limited has received a revisionary order from the Principal Commissioner of Income Tax (PCIT), Chennai, dated February 27, 2026, relating to Assessment Year 2020-21 (FY 2019-20). The PCIT has partly set aside an earlier tax order. On the Rs. 2.49 Crore disallowance of Defined Benefit Plan expenses, the PCIT accepted the company's submission and directed the Assessing Officer (AO) to allow the deduction. On the Rs. 5.12 Crore disallowance of Trademark fees, the PCIT directed the AO to consider the position taken in other group entities. The expected financial impact is estimated at Rs. 2.66 Crores (excluding interest and penalty). No penalty or restriction has been imposed, and the company will work with the AO on further clarifications.
This is a moderately positive development for shareholders — the higher tax authority has overturned key portions of the earlier disallowance, especially on the Defined Benefit Plan. The matter is still open with the AO, and the financial exposure is limited to around Rs. 2.66 Crores, which is not material to the company.