Indian Hume Pipe Co. details penalty and disallowance dispute with Income Tax Department
The Indian Hume Pipe Company Limited is facing litigation with the Assessment Unit of the Income Tax Department, NAFAC, Delhi, concerning an order passed by the Commissioner of Income Tax (Appeals). The dispute revolves around a penalty and a disallowed claim related to unexplained purchases.According to company details regarding the pending matter, the company received an order dated August 14, 2026, from the Commissioner of Income Tax (Appeals) under Section 250 of the Income Tax Act, 1961. This order confirmed a levy penalty of Rs. 63,10,816/- imposed under section 271AAC(1) of the Income Tax Act, 1961, which was issued in an earlier order dated March 31, 2026.
The penalty was imposed following an addition made to the assessment order, alleging unexplained purchases amounting to Rs. 10,51,80,264/-. This disallowance occurred despite the pendency of a quantum appeal filed by the company before the Hon. ITAT, Mumbai. The initial disallowance was made in an assessment order dated March 25, 2025, passed under Section 143(3) of the Act, and later confirmed by the Commissioner of Income Tax (Appeals) on August 30, 2025.
The company has appealed this decision to the Hon. Income Tax Appellate Tribunal (ITAT), Mumbai, which is currently adjudicating the quantum appeal.
Key details of the litigation are summarized below:
| Aspect | Details |
|---|---|
| Opposing Party | Assessment Unit, Income Tax Department, NAFAC, Delhi |
| Litigating Authority | Commissioner of Income Tax (Appeals), NAFAC Delhi |
| Penalty Confirmed | Rs. 63,10,816/- under section 271AAC(1) of the Income Tax Act, 1961 |
| Disallowance Claimed | Unexplained purchases amounting to Rs. 10,51,80,264/- |
The company stated that it intends to appeal the August 14, 2026 order before the Hon. Income Tax Appellate Tribunal (ITAT), Mumbai, challenging the penalty sustained by the Commissioner of Income Tax (Appeals). The Indian Hume Pipe Company Limited believes it possesses sufficient factual and legal grounds to support its position in this matter, and consequently, expects the entire demand to subside.
The company affirmed that there is no material impact on its financial, operational, or other activities due to this pending dispute.
INDIANHUME Stock Price Movement
On Friday, shares of Indian Hume Pipe Company Limited slipped by 0.1% to close at ₹369.15, as the stock traded within a range defined by a day's high of ₹373 and a low of ₹366.3. The equity saw trading action marked by a volume of 15,220 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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