CG Power Gets ₹3.65 Billion Final Tax Demand for 2017-18; Plans to Appeal

CG Power and Industrial Solutions Ltd. said on Wednesday that it has received a final tax assessment order of ₹3.65 billion for the 2018-19 assessment year. The company said in an exchange filing that it disagrees with the order and will file appeals against the additions and disallowances.

The company said it believes it has a strong case, citing existing rulings, jurisprudence and legal advice that support its chances of getting the disallowances and additions removed.

CG Power has been in a legal dispute with the Central Board of Direct Taxes over the recast of its accounts from the April-March 2014-15 period to 2019-20. It previously secured an order from the Bombay High Court allowing fresh returns to be taken on record and assessed accordingly.

Following this process, the tax department issued the final assessment order for 2018-19, which included several disallowances and additions that led to the latest tax demand.