Deepak Fertilisers subsidiaries face significant tax demands

Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) announced that its material subsidiaries, Deepak Mining Solutions Limited (DMSL) and Mahadhan AgriTech Limited (MAL), have received demand orders from Income Tax Authorities. DMSL faces a total demand of INR 89,56,67,295 for AY 2022-23 and INR 14,91,97,220 for AY 2024-25. The company attributes this to the non-consideration of transferred tax and TDS credits related to demerged businesses, claiming no contravention.

Similarly, Mahadhan AgriTech Limited (MAL) received a demand of INR 2,17,94,900 for AY 2024-25, stemming from an increased income of INR 6,73,10,350. DFPCL states that there is no financial impact as these are erroneous demands due to non-consideration of credits, and the subsidiaries are in the process of filing rectifications or seeking clarifications from the authorities.

The orders for DMSL were received on December 23, 2025, and December 22, 2025. MAL's order was received on December 23, 2025. Assessment proceedings for AY 2024-25 for both subsidiaries are ongoing and expected to conclude by March 31, 2026.