Cummins India to appeal $1.19m income tax penalty

Cummins India Limited has received an order from the Assessment Unit of the Income Tax Department, imposing a penalty of INR 1,19,10,452. The penalty was levied under Section 27(1)(c) of the Income Tax Act, 1961, without prior opportunity for the company to be heard. Cummins India stated its intention to file an appeal with the Appellate authority regarding this order.

The order was received on December 22, 2025, although it is dated December 19, 2025. According to the company, the penalty stems from an underlying adjustment made during assessment proceedings, which has already been contested. The related appeal is currently pending before the Income Tax Appellate Tribunal.

Cummins India clarified that the penalty is not expected to have a material impact on the company's financials, operations, or any other activity. The disclosure was made in accordance with Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/P0D2/CIR/P/0155 dated November 11, 2024.