CE Info Systems Faces ₹73.1 mln Tax Claim and Penalty – How Big Is the Real Risk?

In an exchange filing, CE Info Systems Ltd reported that the tax department has issued an order raising an additional tax demand of ₹73.1 million. The same order has also imposed a penalty of ₹7.3 million, taking the total potential exposure to about ₹80.4 million if the company were to accept the assessment in full.​

The company has indicated it will scrutinise the basis of the demand and take appropriate advice before deciding on a response. In many such cases, corporates choose to challenge the order before higher authorities, which can lead to a reduction, waiver or confirmation of the liability over time. Until then, investors will track how CE Info Systems classifies the exposure—whether as a contingent liability or through provisions—and whether management offers any guidance on the financial impact.​

Key highlights

Tax demand of ₹73.1 million raised on CE Info Systems Ltd.​

Additional penalty of ₹7.3 million, taking total exposure to about ₹80.4 million.​

Company reviewing the order and likely to evaluate appellate remedies before payment.​

Accounting treatment (provision vs contingent liability) and management commentary will be key for investors.​

Source: CE Info Systems Ltd