Kansai Nerolac faces $1.68m income tax penalty from 2008-09 assessment

Kansai Nerolac Paints Limited announced today that it has received an order from the Assessment Unit, Income-tax Department, dated September 16, 2025. The order, issued under Section 271(1)(c) of the Income-tax Act, 1961, imposes a penalty of INR 1,68,62,615.

This penalty stems from disallowance/additions made in the Assessment Order under Section 143(3) for the Assessment Year 2008-09, which was dated January 30, 2012. Kansai Nerolac Paints Limited stated that it possesses relevant records and precedence to support its claim and intends to file an appeal against the order.

Despite the penalty, the company confirmed that there would be no material impact on its financials, operations, or other activities. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and related SEBI Circulars.