Ambika Cotton Mills Ltd. Receives Assessment Order with Demand of Rs. 45,24,490
Ambika Cotton Mills Limited announced on March 30, 2026, that it received an assessment order from the Income Tax Department’s Assessment Unit. The order, dated March 29, 2026, pertains to the Assessment Year 2024-25 and includes a demand of Rs. 45,24,490.The demand arises from a disallowance of an expenditure of Rs. 1,75,93,707, which the Assessment Unit is construing as royalty or technical fees, alongside additional disallowances of Rs. 383,474. The company’s submissions that the expenditure does not fall under the definition of royalty or technical fees and is not disallowable for export sales, were not accepted by the Assessment Unit, citing a decision from the Jurisdictional High Court.
The company intends to appeal the assessment order before the CIT (Appeals) within the prescribed timeframe. Management indicated that the assessment order concerns an interpretation of laws and is contrary to the decision of the Jurisdictional High Court. The company reported that the order was received on March 29, 2026, at 9:15 PM via email.
According to the company, the assessment does not have a material impact on its financial, operational, or other activities.
| Particulars | Details |
|---|---|
| Name of the Authority | Assessment Unit, Income Tax Department |
| Nature and details of the action(s) | The Assessment Unit, Income Tax Department vide Order dated 29.03.2026, passed under Section 143(3) of the Income Tax Act, 1961 raised a demand of Rs. 45,24,490/- on account of disallowance of certain expenses for the Assessment Year 2024-25 |
| Date of receipt of communication from the Authority | 29-03-2026 ( Sunday) at 9.15 PM through e-Mail. |
| Details of the violation(s)/contravention (s) committed or alleged to be committed | There is no violation. Dispute relates to Interpretation of Laws |
| Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | There is no material impact on the financial, Operation or other activities of the Company |
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