According to the company’s exchange filing, the demand has arisen from disallowances made by the tax authority. However, Shree Cement has flagged “prima facie errors” in the order and stated that the disputed amount is expected to reduce significantly upon rectification.
The company also noted that the balance demand would be adjusted against pending refunds.
It further clarified that remedial actions are being initiated and that previous rulings in similar cases give it confidence that the matter will be resolved without material financial or operational impact.
Also Read: Shree Cement Q4 Results: Profit, revenue above estimates; ₹60 dividend declared
The final assessment order was issued by the Income Tax Department under Section 143(3) of the Income Tax Act and follows a draft order shared earlier this year.
Post this development, shares of Shree Cement dropped 3.54% to trade at ₹29,875 on the BSE as of 3:13 PM today.
