ACC to appeal income tax penalties for assessment years

ACC Limited has received two income tax orders imposing penalties for the Assessment Years 2015-16 and 2018-19. For AY 2015-16, a penalty of INR 14,22,15,663 has been levied under Section 271(1)(c) of the Income Tax Act, 1961, for furnishing inaccurate particulars of income related to disallowed expenses of INR 49,25,55,868.

Additionally, for AY 2018-19, a penalty of INR 8,85,68,810 has been imposed under Section 270A(9) for under-reporting income, stemming from disallowed expenditure amounting to INR 12,79,60,024. The total penalty across both years exceeds INR 23 crore.

ACC Limited intends to contest both orders by filing appeals with the Commissioner of Income Tax (Appeals) within the prescribed timelines and will concurrently seek a stay on the penalty demands. The company states there is currently no impact on financial activity due to these penalty demands.