Shree Cement Limited, one of India’s leading cement manufacturers, has reported receiving a final assessment order from the Income Tax Department, demanding Rs. 588.65 crore for the financial year 2021–22. This huge tax demand has been raised because the tax authorities have disallowed certain expenses claimed by the company in its income tax return.
The company said that it received the final assessment order on May 27, 2025. The order was passed under Section 143(3) of the Income Tax Act, 1961, by the Assistant Commissioner of Income Tax, Central Circle, Ajmer. This follows an earlier draft assessment order, which had been issued to the company in April 2025.
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According to Shree Cement, the total demand of Rs. 588.65 crore includes interest, and the main reason for the demand is the disallowances made by the tax department during the assessment process. However, the company believes there are clear errors in the order and expects that once these mistakes are corrected by the assessing officer, the tax demand will come down significantly.
The company also stated that any remaining disputed amount is expected to be adjusted against the refunds that the company is yet to receive from the Income Tax Department. This means that the company may not have to make any fresh payments immediately.
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Shree Cement confirmed that it is taking legal steps and exploring all options available under the law to deal with the tax demand. The company said it is following advice from its legal experts to protect its interests.
Importantly, Shree Cement has made it clear that this development will not affect its financial position, business operations, or day-to-day activities. The company pointed out that in previous years, tax authorities and appellate bodies have passed favorable orders in similar cases, and it expects a similar outcome this time as well.
There are no penalties or sanctions mentioned in the order, and the company has not been accused of any wrongdoing. It continues to comply with all legal and regulatory requirements.
This update was shared by the company in a regulatory filing, as part of its responsibility to inform investors and the public about important developments.
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