Deepak Fertilisers Subsidiaries Receive Over Rs 1,000 Crore In Tax Demands, Termed Credit-Related

In an exchange filing dated 23 December 2025, Deepak Fertilisers reported that the Deputy Commissioner of Income Tax (Central Circle) has raised a Rs 895,67,67,295 demand on Deepak Mining Solutions for AY 2022-23 under section 170A of the Income Tax Act. The company says the assessing officer has not considered tax and TDS credits of Rs 819,57,83,52 related to a demerged business claimed in a modified return after an NCLT order, and therefore regards the demand as erroneous with no allegation of contravention.
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A second order from the Central Processing Centre, Bengaluru, has created an additional demand of Rs 149,19,72,20 on Deepak Mining Solutions for AY 2024-25 under section 143(1), driven by an unexplained income increase of Rs 7,79,73,00 and non-credit of transferred TDS of Rs 121,80,37,76. Separately, Mahadhan AgriTech has received a Rs 21,79,49,00 demand for AY 2024-25 after CPC increased taxable income by Rs 67,31,03,50, again without any specific violation cited.

The company has stated that there is currently no financial or operational impact, as Deepak Mining Solutions will file rectification before the assessing officer for AY 2022-23 and seek clarifications for AY 2024-25, while assessment for Mahadhan AgriTech’s AY 2024-25 remains in progress until 31 March 2026.
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Key Highlights For Investors

• Total tax demands on Deepak Mining Solutions: Rs 895.67 crore (AY 2022-23) plus Rs 149.20 crore (AY 2024-25).
• Tax demand on Mahadhan AgriTech: Rs 21.79 crore for AY 2024-25 from CPC, Bengaluru.
• Reason for demands: Non-consideration of tax and TDS credits linked to a demerger and CPC-driven income increases; no explicit allegation of contravention in any order.
• Management stance: Treating the major demand as erroneous; pursuing rectification, clarifications and necessary actions within ongoing assessment timelines.
• Near-term impact: Company asserts no current hit to financials or operations; however, amounts sit as contingent exposures until resolved.

Sources: Company exchange filing dated 23 December 2025 on BSE and NSE, Deepak Fertilisers And Petrochemicals Corporation Limited.
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