Vedanta’s Bharat Aluminium Company Hit with ₹1.03 Crore Income Tax Penalty
Vedanta’s subsidiary BALCO has been hit with a Rs. 1.03 crore income tax penalty for AY 2011–12, which it plans to appeal.
Vedanta Limited has announced that its subsidiary Bharat Aluminium Company Limited (BALCO) has received an income tax penalty order amounting to 1.03 crore rupees. The penalty has been imposed by the Assessment Unit of the Income Tax Department for the assessment year 2011 to 2012.
The order was issued under Section 271(1)(c) of the Income Tax Act, a provision that deals with cases where the tax authorities believe there has been concealment of income or submission of inaccurate particulars. According to the company’s statement, this penalty follows an earlier assessment order passed under Section 254 read with Section 143(3) of the Income Tax Act.
The penalty order was dated 13 August 2025 and was received by BALCO on 14 August 2025 at 6:20 in the morning. The order carries a unique document identification number, which is standard practice for official tax communications.
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In its disclosure, Vedanta stated that BALCO intends to challenge the penalty. The company plans to file an appeal with the Appellate Authority within the time limits set by the Income Tax Law. BALCO also intends to submit a rectification application against the penalty order.
Vedanta has indicated that, based on the merits of the case, it expects a favourable outcome from the appeal process. The company has also said that it does not expect the order to have any material financial impact on BALCO’s operations or its overall business.
The penalty amount is huge and BALCO is a large player in the aluminium sector, and such disputes with tax authorities are not uncommon in the corporate world. Companies often face long-standing assessments or differences in interpretation of tax rules, especially for older financial years.
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About Company
BALCO, headquartered in Korba, Chhattisgarh, is one of India’s leading aluminium producers with operations that include bauxite mining, alumina refining, and aluminium smelting. It is a key part of Vedanta’s metals and mining portfolio and plays a significant role in meeting the country’s aluminium demand.
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