CG Power faces ₹3.65bn tax demand, plans appeal

CG Power and Industrial Solutions Limited announced on November 19, 2025, that it has received a final assessment order for Assessment Year 2018-19, resulting in a tax demand of ₹3,65,37,21,581. The demand stems from various disallowances and additions made by the Income Tax Department under section 143(3) r.w.s. 144C(13) of the Income Tax Act, 1961.

The company stated its intention to appeal the order, noting it is taking steps to file appeals against the additions and disallowances. Additionally, CG Power plans to file an application for rectification of mistakes apparent from the record. The company expressed confidence in its position, stating that based on substantial jurisprudence, rulings, and legal opinions, it has a fair chance of succeeding in the appeal, leading to the deletion of the disallowances and additions.

This development follows an earlier disclosure on May 8, 2024, regarding a Bombay High Court order from April 30, 2024. That order directed the CBDT to allow CG Power to file revised income tax returns based on recast accounts for the financial years 2014-15 to 2019-20 and instructed the assessing authority to process these returns.