SML Mahindra Limited Penalty Demand Nullified After Tax Appeal Success

SML Mahindra Limited Penalty Demand Nullified After Tax Appeal Success​

SML Mahindra Limited has successfully appealed an income tax penalty imposed for Assessment Year 2016-17, with the National Faceless Appeal Centre (NFAC) ordering the nullification of a demand amounting to Rs 11.56 lakhs.

The decision was reached by the Commissioner of Income-Tax (Appeals), who allowed the company's appeal and consequently nullified the penalty demand related to an earlier order issued by the Income Tax Department. The outcome was received via email on July 31, 2026.

This matter relates to a previous action taken by the Income Tax Department’s Assessment Unit for AY 2016-17. An initial order dated February 28, 2024, had imposed a penalty of Rs 11.56 lakhs on SML Mahindra Limited under section 271(1)(c) of the Income tax Act, 1961. This original action was communicated to stock exchanges on February 29, 2024.

The successful appeal with NFAC has resulted in the nullification of the penalty demand, which had previously been imposed on the company regarding this assessment year.

SMLMAH Stock Price Movement​

Today, SML Mahindra Limited shares rallied, closing at ₹5685.6 after edging up 3.76% in the post-market session. The stock achieved a powerful intraday high of ₹5987.9, successfully trading near its 52-week peak amid strong investor demand.