Rane (Madras) Limited Receives Assessment Order and Penalty Notice
Rane (Madras) Limited announced receipt of an assessment order and penalty notice from the Assessment Unit, National Faceless Assessment Centre, Income Tax Department on March 27, 2026.The assessment order pertains to Assessment Year 2023-24 (Financial Year 2022-23) and relates to the treatment of gain arising from derivative assets and trademark fee expenditure. Previously, the company received a show cause notice concerning these items.
The authority disallowed trademark fee expenditure of Rs.10.37 crores paid to Rane Holdings Limited and adjusted upward the SBLC commission by Rs.2.60 crores. The total tax demand amounts to Rs.3.12 crores, excluding applicable penalties.
Separately, the authority initiated penalty proceedings under Section 274 read with section 270A of the Income Tax Act, 1961.
Rane (Madras) Limited intends to contest the order through its tax advisors. The financial impact of the assessment order is a tax demand of Rs.3.12 crores.
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