CG Power and Industrial Solutions has got a stay order on a demand of Rs.468 crore from the Income Tax Department, provided it deposits Rs.42 crore in five instalments from August 26 to December 25.
The amount in question pertains to a demand raised by the I-T authorities in July for FY22.
The company moved the Tax Appellate Tribunal on August 8, challenging the additions and disallowances in the I-T Department’s order. It also moved an application before the Assessing Officer on August 11 for a stay on the demand.
The stay order was been granted pending disposal of the appeal.
The balance 20 per cent of the amount towards the disputed demand shall be payable as the sixth instalment subject to certain conditions on or before 25.01.2026. The company said it will comply with the order.
ORDER OF EVENTS
In June, CG Power had filed a revised return of income for the assessment year FY22, declaring a tax loss of Rs.2,622.90 crore. The Tax Department then issued a notice of assessment, seeking clarification on certain aspects of the return of income of that period.
Subsequently, the Assessing Officer issued a draft assessment order, proposing an upward revision of the taxable income for FY22 to Rs.1,194.54 crore. The company
The company then filed objections before the Dispute Resolution Panel seeking relief on the proposed additions/ disallowance in the draft assessment order.
The Resolution Panel issued directions to the AO rejecting all the objections raised by the company.
The final assessment order was issued after that.
Source: businessline
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