Assessment on Hold—CG Power Awaits Tax Authority's Final Call

CG Power and Industrial Solutions Ltd remains in a state of suspense as the final assessment order of the Assessing Officer (AO) hangs in the balance. The company has disclosed that directions of the Dispute Resolution Panel (DRP) may lead to additional tax burden, adding to financial uncertainty.

 

The outstanding assessment is pending scrutiny under the Income Tax Act, and any directions issued by the DRP—if the assessment is still pending—could have a significant impact on CG Power's tax liability. Judicial practice teaches us that the DRP can issue directions only in subsisting assessment proceedings, because once a final order is passed, the jurisdiction of the DRP ceases2.

 

This follows heightened broader regulatory attention to corporate tax compliance and transfer pricing calculations. Shareholders and analysts are watching the development closely, as any meaningful tax expense would affect CG Power's profitability estimate and cash flow planning.

 

Relevant Sources: Taxmann, TaxGuru, India Kanoon