LG Electronics India Receives Tax Penalty Order from Income Tax Department for FY 2013-14
LG Electronics India Limited has received a penalty order from the Assessment Unit of the Income Tax Department, Ministry of Finance, Government of India, concerning financial matters related to Financial Year (FY) 2013-14.The company was issued the penalty order on June 19, 2026, for levying a penalty under section 271(1)(c) of the Income Tax Act, 1961. This action follows previous tax adjustments made by the Department regarding the taxability of incentives received from the Uttar Pradesh Government.
The details outlined in the order include assessments related to both tax adjustments and the subsequent penalty. The company reported that while the penalty was levied, it believes it has a strong case based on prior ITAT decisions favoring the company for similar proceedings spanning FY 2002-03, 2003-04, and 2006-07.
A summary of the key financial actions and dates is provided below:
| Particulars | Details |
|---|---|
| Authority | Assessment Unit Income Tax Department |
| Date of Order Receipt | June 19, 2026 |
| Nature of Action | Penalty order issued for financial year 2013-14 |
| Tax Adjustments Levied | INR 24,22,87,278 (Regarding incentive from Uttar Pradesh Government) |
| Penalty Amount | INR 8,23,53,445 under section 271(1)(c) of the Income Tax Act, 1961 |
The penalty was imposed subsequent to an order issued by the Income Tax Appellate Tribunal (ITAT) on October 15, 2025, which had confirmed tax adjustments made by the Income Tax Department. The company is currently appealing the original ITAT order in the Delhi High Court and intends to file an appeal against the recently issued penalty order before the appropriate authority.
LG Electronics stated that there was no substantial impact of these proceedings on its financial operations or activities.
LGEINDIA Stock Price Movement
On Friday, shares of LG Electronics India Limited edged significantly higher, closing at ₹1647.80 after a 4.50% ascent. The stock was actively traded throughout the session, with over 7.8 million shares changing hands.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.