Orient Cement Limited — Important, 29-01-2025: General Updates

The Income Tax Authority has issued an order under Section 92CA(3) of the Income Tax Act for the assessment year 2022-23, which pertains to transfer pricing adjustments related to power transfer between the company’s captive and manufacturing units. The authority has proposed an increase in the company’s income by ₹41.22 crore, significantly higher than the original claim of ₹11.33 crore, which the company views as erroneous. The final tax demand will include penalties and will depend on the ongoing assessment process. The company plans to challenge this order by filing objections with the Income Tax Appellate Authorities. Currently, the financial impact remains undetermined as the final tax demand for FY 2021-22 is still pending. Investors should keep a close watch, as this development may affect the company’s financial outlook.