Advertisement
The Income Tax Department has levied two separate fines totaling INR 23.07 crore (approximately USD 2.8 million) on ACC Ltd, a subsidiary of Ambuja Cement under the Adani Group, for alleged inaccuracies in income reporting. The first penalty of INR 14.22 crore relates to the assessment year 2015-16, while the second of INR 8.85 crore concerns the 2018-19 period. ACC has announced it will appeal both penalties and seek a stay, emphasizing that these demands pertain to pre-Acquisition periods and will not affect current operations or finances.
The Income Tax Department recently imposed two penalties on ACC Ltd, totaling INR 23.07 crore. The first, amounting to INR 14.22 crore, pertains to the assessment year 2015-16 and arises from alleged furnishing of inaccurate particulars of income. The department had previously disallowed certain expenses totaling INR 49.25 crore for that period, which it used as the basis for the penalty, equivalent to 100% of the tax effect of the disallowed expenses. Advertisement
The second penalty of INR 8.85 crore relates to the assessment year 2018-19. Here, the department disallowed claimed expenditures of INR 12.79 crore, alleging under-reporting of income to that extent. This penalty amounts to 200% of the tax effect of the disallowed expenditure.
ACC Ltd clarified that it will contest both penalties before the Commissioner of Income Tax (Appeals) and intends to seek a stay on the demands. The company highlighted that both penalties relate to periods before its acquisition by the Adani Group and will not impact its current financial activities.
ACC is a subsidiary of Ambuja Cement, of which the Adani Group owns more than 50%. The acquisition of Ambuja Cements and ACC Ltd from Switzerland's Holcim Group was completed in September 2022 for USD 6.4 billion. The current penalties reflect compliance scrutiny for periods prior to this acquisition.
For context, ACC reported operational revenue of INR 21,762 crore in FY25, with a cement sales volume of 39 million tonnes. Shares of ACC Ltd were trading at INR 1,835.25 each on the BSE, up 0.33% from the previous close.
Source: PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
