In a recent development, Cummins disclosed an update regarding its ongoing litigation with the Income Tax Department. Following regulations set forth by SEBI, the company provided details on the matter.
The litigation pertains to an appeal filed against the Centralized Processing Centre (CPC) concerning the assessment year 2021-22. The Commissioner of Income Tax (Appeals) (CIT(A)) issued an order on March 13, 2024, which the company received on March 14, 2024.
According to the order, the CIT(A) granted relief for one addition amounting to INR 20.72 crore, while confirming another addition to the returned income totaling INR 22.06 crore. This confirmation entails a tax impact of approximately INR 5.56 crore.
The company intends to challenge this decision by filing an appeal before the Income Tax Appellate Tribunal (ITAT) in due course. The expected financial implications due to compensation or penalty are estimated to be around INR 5.56 crore.
