SRF Ltd has disclosed a tax demand of ₹327.44 crore for assessment year 2022-23, arising from what the company termed a technical error in an order issued by the Assessment Unit of the Income Tax Department. According to reports from CNBC TV18, the company stated that additions of ₹30.54 crore were made to taxable income under Section 143(3) of the Income Tax Act, 1961. However, due to a technical error, the total demand was computed at ₹327.44 crore, including interest of ₹101.77 crore under Section 234B.
As reported by CNBC TV18, SRF stated that it has filed a rectification application before the Assessing Officer on March 10, 2026, and has also filed an appeal before the Income Tax Appellate Tribunal (ITAT) on March 19, 2026 as a precautionary measure. The management believes the demand is not legally sustainable and expects it to be reversed upon rectification of the error. The company added that there is no immediate impact on its financial, operational or other activities.
SRF reported robust financial results for the December quarter, with net profit surging 59.7% year-on-year to ₹432.7 crore compared with ₹271 crore in the same period last year, while revenue rose 6.3% to ₹3,712.5 crore. According to latest reports, EBITDA grew 26% to ₹780 crore, translating into a margin of 21% versus 20.9% in the same quarter last year. The company disclosed these strong results as part of its regular quarterly reporting under SEBI regulations.
SRF Ltd shares closed at ₹2,399.90 on the NSE on April 7, down ₹33.90 or 1.39% from the previous close. The stock witnessed negative movement during the trading session following the tax demand disclosure. The company noted that the disclosure was made under SEBI's Listing Obligations and Disclosure Requirements Regulations as a matter of abundant caution, emphasizing that the demand arose due to a technical error and was not considered material earlier.
