CL Educate Limited Receives Income Tax Order
CL Educate Limited announced it received an order dated March 30, 2026, from the Office of the Deputy Commissioner of Income Tax, Circle-75(1), Delhi, pertaining to Financial Year 2019-20 (Assessment Year 2020-21). The order, issued under Section 201(1)/201(1A) of the Income Tax Act, 1961, raises a total demand of Rs. 4,85,32,252.The demand comprises Rs. 2,63,11,418 under Section 201(1) and Rs. 2,22,20,834 as interest under Section 201(1A). The order alleges defaults in the deduction and deposit of TDS related to provisions for expenses, salary payments, and instances of incorrect TDS deductions.
The company intends to appeal the order before the appropriate appellate authority and does not anticipate a material adverse impact on its business operations. The matter will be disclosed as a contingent liability in the financial statements.
Details of the Order
| S.No. | Particulars | Details |
|---|---|---|
| 1 | Name of the authority | Office of the Deputy Commissioner of Income Tax, Circle- 75(1), Room No. 607, 6th Floor, Aayakar Bhawan, Laxmi Nagar, Delhi - 110092 |
| 2 | Nature and details of the action(s) taken or order(s) passed | Order under Section 201(1)/201(1A) of the Income Tax Act, 1961 for Financial Year 2019-20 (Assessment Year 2020-21) for alleged default in deduction/short deduction/late deduction and deposit of TDS, resulting in a total demand of Rs. 4,85,32,252/- comprising: Demand w's 201(1): Rs. 2,63,11,418/- Interest u/s 201(1A): Rs. 2,22,20,834/- |
| 3 | Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority | March 30, 2026 |
| 4 | Details of the violation(s)/ contravention(s) committed or alleged to be committed | Alleged default in deduction of TDS on (i) Provisions for expenses created as on March 31, 2020 where actual bills were received and TDS deducted/deposited in subsequent FY 2020-21; (ii) salary payments to certain employees u/s 192 of the Income Tax Act, 1961; and (iii) alleged short deduction of TDS on certain payments where deduction u/s 194 was made by the Company instead of u/s 192. |
| 5 | Impact on financial, operational or other activities of the listed entity, quantifiable in monetary terms to the extent possible | The total demand raised is Rs. 4,85,32,252/-. The company will be contesting the Order and proposes to file an appeal before the appropriate appellate authority. The matter will be disclosed as a contingent liability in the financial statements for the relevant period. The Company does not anticipate any material adverse impact on its business operations. |
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