Titan Company Limited today informed the stock exchanges (BSE and NSE), in compliance with Regulation 30 of the SEBI, regarding the receipt of tax penalty orders from the Assessment Unit of the Income Tax Department.
The department’s orders were passed on June 26th under the Section 270A of the Income Tax Act, 1961, alleging an “under-reporting of income” due to adjustments made to the company’s tax assessment. The impacted financial years include Assessment Year 2017-18 with a penalty of 56.67 lakhs, and Assessment Year 2019-20 with a penalty of 370.00 lakhs; a total of approximately 4.27 crore.
The company noted the 18-day delay in notifying the stock exchanges was due to the fact that they were internally reviewing the orders and evaluating their legal options.
Titan currently is in the process of filing an appeal against the orders and have stated that the penalty has had no material impact on the operations, financials, or other activities of the company.