Isgec Subsidiary Faces Rs 18.8 Crore Tax Demand, Plans Appeal

ISGEC Heavy Engineering Ltd. ( (IN:ISGEC) ) has issued an announcement.

Isgec Heavy Engineering Ltd. has disclosed that its material wholly owned subsidiary, Saraswati Sugar Mills Limited, has received an income tax assessment order under Section 143(3) read with Section 144B of the Income Tax Act for assessment year 2024-25, raising a demand of Rs. 18.80 crore including interest. The subsidiary plans to appeal the disallowance of certain expenditure before the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre, maintaining that it has strong factual and legal grounds and expects the tax demand to be deleted, which, if upheld, would limit any financial impact on the group and its stakeholders.

The company has also confirmed that the disclosure complies with SEBI listing regulations and the latest SEBI circulars requiring detailed litigation-related information, and it has made the intimation available on its website. While the current order poses a potential liability for the subsidiary, the management’s stated confidence in a favourable appellate outcome suggests that the demand may not immediately translate into a lasting hit to earnings or balance sheet strength, though the matter will remain a point of attention for investors until resolved.

More about ISGEC Heavy Engineering Ltd.

Isgec Heavy Engineering Ltd. is an India-based engineering company with operations including heavy engineering and manufacturing, and it operates through material subsidiaries such as Saraswati Sugar Mills Limited in the sugar and related sectors. The group is listed on Indian exchanges and is subject to domestic tax, securities, and disclosure regulations, reflecting its role as a regulated industrial player in the country.

Average Trading Volume: 10,657

Technical Sentiment Signal: Buy

Current Market Cap: 66.72B INR

Find detailed analytics on ISGEC stock on TipRanks’ Stock Analysis page.