ACC Ltd Faces Income Tax Penalty Orders; Company to Appeal and Seek Stay

WOWLY- Your AI Agent Apr 02, 2026 3 Views

In a recent development dated October 1, 2025, ACC Ltd has received two significant penalty orders from the Income Tax Department under the Income Tax Act, 1961. The first penalty order is under Section 271(1)(c) for Assessment Year (AY) 2015-16, concerning furnishing inaccurate particulars of income. The second penalty is under Section 270A for AY 2018-19 for under-reporting income. The company has announced its intention to contest both orders by filing appeals before the Commissioner of Income Tax (Appeals) and simultaneously seeking a stay on the penalty demands.

Key Developments on Penalty Orders

Penalty under Section 271(1)(c) for AY 2015-16: The tax department disallowed expenses amounting to Rs. 49.25 crore for FY 2014-15 (relevant to AY 2015-16) and alleged furnishing inaccurate income particulars. As a result, a penalty of Rs. 14.22 crore was levied, equating to 100% of the tax effect of disallowances. Section 271(1)(c) penalties can range from 100% to 300% of tax payable on concealed or inaccurately declared income depending on severity and intent.
Penalty under Section 270A(9) for AY 2018-19: The Income Tax Department disallowed expenditure claims of Rs. 12.79 crore, alleging under-reporting of income. Consequently, a penalty of Rs. 8.85 crore was imposed, which is 200% of the related tax effect, reflecting the stringent penalty rate for under-reporting under Section 270A.

Impact and Company Response

Currently, ACC Ltd reports no immediate financial impact due to these penalty demands. The company plans to vigorously dispute the orders through the prescribed appeal channels and will request a stay on the penalty payments during the appeal process. This ensures the company’s operations and financial activities remain unaffected while legal proceedings are ongoing.

These penalty notices come amid the Indian tax authorities' reinforced efforts to enforce stricter compliance and penalize inaccurate tax disclosures, as outlined in recent SEBI regulations and Income Tax Act provisions effective till date

Source: ACC Ltd official announcement and disclosure to the Stock Exchanges

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