Polycab: initiated process for filing rectification application

Polycab: initiated process for filing rectification application

Polycab India Initiates Rectification Process for Income Tax Demand

Polycab India Limited has disclosed its response to an income tax assessment order issued for the Assessment Year 2024-25 (pertaining to the Financial Year 2023-24), which triggered a demand of ₹327.45 crores. The company received the order on March 3, 2026 from the Office of the Deputy Commissioner of Income-Tax, Mumbai. The assessment, conducted under Section 143(3) of the Income Tax Act, 1961, included disallowances and additions totaling ₹41.87 crores.

The company has identified discrepancies in the demand calculation, attributing the significant difference between the additions (₹41.87 crores) and the tax demand (₹327.45 crores) to computational or clerical errors. To address this, Polycab India has initiated a rectification application under Section 154 of the Income Tax Act, seeking correction of these errors before the jurisdictional Assessing Officer.

In addition to the rectification process, the company plans to challenge the assessment order through an appeal, asserting that the tax demand is not legally sustainable based on advice from its tax advisors. Management emphasized that the matter is being handled through legal channels and does not anticipate any material impact on the company's financial position or operations.

Polycab India's response follows prior disclosures to stock exchanges in December 2023, January 2025, and April 2025, indicating ongoing engagement with tax authorities. The company remains focused on resolving the issue while maintaining operational continuity.

This development underscores the importance of tax compliance and dispute resolution processes in corporate governance, with Polycab India navigating the matter through prescribed legal mechanisms. Investors are advised to monitor updates as the case progresses.

Polycab India Disclosure on Income Tax Assessment Order, Investywise (March 4, 2026): Polycab India Disclosure on Income Tax Assessment Order, Investywise (March 4, 2026)
Polycab India Receives Rs 327.45 Crore Income Tax Demand, Scanx.trade (March 4, 2026): Polycab India Receives Rs 327.45 Crore Income Tax Demand, Scanx.trade (March 4, 2026)