Wires and cables manufacturer RR Kabel Ltd announced on Tuesday (March 24) that it has received reassessment orders from the Office of the Deputy Commissioner of Income Tax, Central Circle-1, Vadodara, for assessment years 2018-19, 2019-20 and 2021-22. According to the company's disclosure, the total income-tax demand amounts to ₹66.58 crore, including interest of ₹42.27 crore. The orders were issued under Section 143(3) read with Section 147 of the Income Tax Act, following reassessment proceedings.
The communication was received on Tuesday for AY 2018-19 and AY 2019-20, while the order for AY 2021-22 was received on March 23, 2026. As reported by CNBC TV18, the reassessment pertains to Financial Years 2017-18, 2018-19 and 2020-21, respectively. The tax demand arises due to certain additions and disallowances of expenditures under various provisions of the Act, with the company stating that the demand appears higher than previous additions due to computational or clerical errors.
RR Kabel stated that such issues are rectifiable under Section 154 of the Income Tax Act, and it plans to file a rectification application before the jurisdictional Assessing Officer. According to the company's disclosure, it also intends to file appeals against all the orders. The company emphasized that it does not currently expect any material impact on its financials, operations or other activities arising from the orders, with no penalty, restriction or sanction imposed as part of the communication.
Despite the tax demand announcement, shares of RR Kabel Ltd ended at ₹1,353.60, up by ₹37.75, or 2.87%, on the BSE on Tuesday. As reported by CNBC TV18, this positive market response suggests investor confidence in the company's ability to manage the tax reassessment process and its limited financial impact on operations.
