Shriram Pistons & Rings Limited has informed the Exchange about Action(s) taken or orders passed - Order received from Income Tax Department
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Shriram Pistons & Rings Limited received an order from the Income Tax Department on June 30, 2025, imposing a penalty of Rs. 74,24,036 (approximately Rs. 74.24 lakhs) under Section 270A of the Income Tax Act, 1961. The penalty relates to Assessment Year 2020-21 and stems from the company's claim of Cess paid on Income Tax as a deductible expenditure, which the Assessing Officer disallowed by making an addition to total income. The Income Tax Department has classified this as 'misreporting of income.' The company has stated it is evaluating all options and plans to file an appeal before the CIT(A).
The penalty amount is small and the company itself states there is no material impact on its financials, operations, or other activities. Since the company is contesting the order through appeal, shareholders should monitor the outcome but the near-term financial impact is negligible.