Epigral Limited has received an income tax assessment order for the 2023-24 fiscal year totaling Rs 28.11 crore. The company maintains the demand is not maintainable and is actively pursuing a rectification application and formal appeal. Management has assured shareholders that the order will not disrupt current operations or financial health, though investors should monitor the legal proceedings for potential future impacts.
Epigral Receives Rs 28 Crore Income Tax Demand
Total Tax Demand: Rs 28.11 crore.
Assessment Year: 2023-24 (Financial Year 2022-23).
Reader Takeaway: Company contests the tax demand as incorrect; asserts no immediate impact on operations or financial stability.
What just happened
Epigral Limited has received an assessment order from the Deputy Commissioner of Income Tax, Circle 2(1)(1), Vadodara. The order, issued under Section 143(3) read with Section 144C(13) of the Income-tax Act, 1961, brings a total tax demand of Rs 28.11 crore for the assessment year 2023-24. The company confirmed the receipt of this demand notice on October 28, 2026.
Why this matters
For stakeholders, the size of the demand—Rs 28.11 crore—represents a non-trivial sum. Regulatory tax disputes can create uncertainty regarding future cash flows or contingency provisions. However, the company has taken an immediate stance that the assessment is factually and legally contestable.
What changes now
Epigral is now initiating a two-pronged legal strategy. The company is in the process of filing a formal rectification application and preparing an appeal against the assessment order. These filings will be submitted within the statutory timelines allowed by the Income Tax Department.
Risks to watch
The primary risk remains the outcome of the appellate process. If the tax authorities uphold the demand, the company may eventually be required to pay the liability, which could impact liquid cash reserves or necessitate new accounting provisions. Shareholders should keep a close eye on future disclosures regarding the outcome of these appeals.
What to track next
Investors should monitor the company’s subsequent regulatory filings for any updates on the rectification status or feedback from the Income Tax Appellate Tribunal (ITAT) or relevant higher authorities.