The Office of the Deputy Commissioner of Income Tax has issued a rectification order reducing a tax demand against EPACK Durable Limited from Rs 29.03 crore to Rs 5.89 crore for AY 2023-24. The electronics manufacturer will continue pursuing its existing appeal before appellate authorities to challenge the remaining balance.
MUMBAI — EPACK Durable Limited has secured a substantial reduction in its outstanding income tax liabilities following a regulatory intervention by central tax authorities. The Office of the Deputy Commissioner of Income Tax issued a formal rectification order that slashes an active tax demand against the company from an initial Rs 29.03 crore down to Rs 5.89 crore.
The decision, communicated formally to the market on June 12, 2026, marks a critical financial development for the original design manufacturer. By successfully contesting the initial calculation, the company has mitigated a major near-term cash flow risk, providing substantial relief to public institutional investors and corporate stakeholders tracking the firm's balance sheet health.
Details of the Income Tax Rectification Order
The regulatory relief stems from an official communication issued under Section 154, read alongside Sections 144 and 144B of the Income Tax Act, 1961. According to a compliance disclosure submitted to domestic stock exchanges, EPACK Durable Limited received the final documentation from the statutory authority on June 11, 2026.
The origin of the dispute traces back to an Assessment Order issued by the Assessment Unit of the Income Tax Department on March 23, 2026. That original order raised a gross tax demand of Rs 29.03 crore for the Assessment Year 2023-24, which corresponds to the financial operations of Fiscal Year 2022-23.
In response, the corporate finance division of the manufacturer filed a formal rectification application directly before the Jurisdictional Assessing Officer. After reviewing the evidentiary submissions and reconciliations presented by the enterprise, the Deputy Commissioner accepted the corrections, resulting in an immediate reduction of Rs 23.14 crore from the initial tax demand.
Ongoing Appeals and Financial Implications
Despite the favorable downward revision achieved through the rectification order, EPACK Durable Limited has confirmed that it will continue to legally challenge the remaining tax demand of Rs 5.89 crore. Prior to obtaining this administrative correction, the firm had already filed a comprehensive legal appeal before the Commissioner of Income Tax (Appeals).
The corporate compliance desk confirmed that the appellate review remains active and pending final adjudication. In its regulatory filing, signed by Company Secretary and Compliance Officer Esha Gupta, the corporation stated it will actively pursue the appellate remedy in accordance with standard statutory laws. Notably, the revised tax demand notice did not impose any fresh operational restrictions, business sanctions, or non-compliance penalties against the manufacturer.
Background and Market Context
EPACK Durable Limited operates as a prominent player in the Indian consumer durable goods sector, specializing in the manufacturing of air conditioners and small domestic appliances. The company maintains heavy manufacturing facilities across Uttarakhand, Rajasthan, and Andhra Pradesh.
Tax rectifications under Section 154 are typically utilized by listed corporations to resolve apparent clerical errors, computational mismatches, or misaligned tax credit data without entering into protracted courtroom litigation. For public shareholders and financial analysts, the swift resolution of this multi-crore dispute removes an overhang regarding potential earnings-per-share (EPS) dilution or unexpected provisioning on the company's income statement.
Official Sources Section
The material facts, legal sections, and financial figures detailed in this journalistic report are drawn directly from the official regulatory disclosure filed by the company under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The documentation was distributed directly to the BSE Limited and the National Stock Exchange of India Limited on June 12, 2026, under the corporate reference file PR450C1129EBCA042431496A2234B3A1EFAEE.pdf.
Quote Section
"Pursuant to the Assessment Order received on March 23, 2026, a tax demand of Rs. 29.03 Crores was raised against the Company. Subsequently, the Company filed a rectification application before the Jurisdictional Assessing Officer. After considering the submissions made by the Company, the Deputy Commissioner of the Income Tax Department passed a Rectification Order, resulting in a reduction of the tax demand from Rs. 29.03 Crores to Rs. 5.89 Crores."
— According to officials in the EPACK Durable Limited corporate disclosure
Why It Matters
The outcome highlights the importance of institutional rectification mechanisms in preventing prolonged corporate tax litigation. For investors, the immediate reduction of the tax demand prevents an unnecessary drain on corporate liquidity and protects working capital reserves, while the continuation of the formal appeal underscores management's intent to completely clear its financial record.
Key Facts at a Glance
Initial Tax Demand: Rs 29.03 crore issued by the Assessment Unit on March 23, 2026.
Revised Tax Demand: Reduced to Rs 5.89 crore following an administrative rectification order.
Applicable Period: Assessment Year 2023-24 (covering Financial Year 2022-23).
Legal Action: The company's prior appeal before the Commissioner of Income Tax (Appeals) remains active to contest the remaining balance.
Sanctions: The Income Tax Department confirmed zero penalties or operational restrictions were levied.
FAQ Section
Q: Why did the Income Tax Department adjust the initial tax demand for EPACK Durable?
A: The adjustment followed a formal rectification application submitted by the company to the Jurisdictional Assessing Officer, which led the Deputy Commissioner to correct and reduce the total tax demand based on the company's factual submissions.
Q: Will EPACK Durable Limited accept and pay the remaining Rs 5.89 crore tax demand?
A: The company intends to continue its legal challenge. It has an active appeal pending before the Commissioner of Income Tax (Appeals) to dispute the remaining liabilities in accordance with applicable Indian laws.
Q: Under what legal provisions was this tax demand reduction executed?
A: The reduction was granted via a rectification order issued under Section 154, read in conjunction with Section 144 and Section 144B of the Income Tax Act, 1961.
Source: National Stock Exchange of India Limited, BSE Limited, and official corporate filing PR450C1129EBCA042431496A2234B3A1EFAEE.pdf.
