Penalty Orders Upholding Education Cess Disallowance Against Chambal Fertilizers & Chemicals Limited
Chambal Fertilizers & Chemicals Limited has provided an update regarding penalty orders passed by the Income Tax Department concerning matters related to the disallowance of various Cesses. The company confirmed receiving directions from the Commissioner of Income-tax (Appeals) on both cases.The updates cover two separate assessments, both involving penalties levied under Section 270A of the Income Tax Act, 1961 by the Assessment Unit of the Income Tax Department. Both penalty orders were upheld by the Appellate authority, and the company plans to challenge these decisions with the appropriate higher authority.
Details regarding the penalty matters are summarized below:
| Penalty Matter | Basis for Penalty | Original Order Date | Upholding Authority | Penalty Amount (INR) |
|---|---|---|---|---|
| Matter 1 | Disallowance of Education Cess and Secondary & Higher Education Cess. | February 24, 2026 | Commissioner of Income-tax (Appeals), Income Tax Department | 58,27,971/- |
| Matter 2 | Disallowance of Education Cess and Secondary & Higher Education Cess. | March 06, 2026 | Commissioner of Income-tax (Appeals), Income Tax Department | 1,35,24,064/- |
In both matters, the company confirmed receipt of the corresponding order on July 13, 2026.
Regarding the impact of these orders, Chambal Fertilizers & Chemicals Limited stated that there is no adverse impact on its financial or operational activities, apart from the amounts of penalty levied in each case. The Company maintains a strong defense in both matters and intends to challenge the upholding decisions before the appropriate authority.
CHAMBLFERT Stock Price Movement
Chambal Fertilizers & Chemicals Limited shares slipped on Tuesday, settling at ₹454.2 after the stock shed 0.23% of its value. The equity recorded a volume of 444,845 shares during the trading session.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.