The Income Tax (I-T) Department has levied a cumulative penalty of ₹23.07 crore on ACC Ltd, a subsidiary of the Adani Group, for alleged discrepancies in income reporting during the assessment years 2015–16 and 2018–19. The company intends to challenge these penalties before the Commissioner of Income Tax (Appeals) and seek a stay on the demands. ACC Ltd asserts that these penalties will not impact its financial activities.
Background of the Penalties
The Income Tax Department imposed two separate penalties on ACC Ltd:
Assessment Year 2015–16: A penalty of ₹14.22 crore was imposed for allegedly furnishing inaccurate particulars of income.
Assessment Year 2018–19: A penalty of ₹8.85 crore was levied for under-reporting of income.
These penalties were announced on October 1, 2025. ACC Ltd has stated that it will contest both orders by filing appeals before the Commissioner of Income Tax (Appeals) within the prescribed timelines and will seek a stay on the penalty demands. The company emphasized that these penalties would have no impact on its financial activity.
ACC Ltd's Response
ACC Ltd, now part of the Adani Group, has expressed its intention to challenge the penalties. The company received the penalty demands on October 1, 2025, and has indicated that it will file appeals before the Commissioner of Income Tax (Appeals) within the prescribed timelines. Additionally, ACC Ltd plans to seek a stay on the penalty demands raised under the respective orders. The company has stated that these penalties will have no impact on its financial activity.
Context of the Penalties
The penalties relate to periods prior to ACC Ltd's acquisition by the Adani Group. In September 2022, the Adani Group acquired Ambuja Cements and its subsidiary ACC Ltd from Switzerland's Holcim Group in a $6.4 billion deal.
Financial Impact
As per its latest annual report, ACC Ltd's revenue from operations in FY25 was ₹21,762 crore, along with a cement sales volume of 39 million tonnes. The company has stated that the penalties will have no impact on its financial activity.
Conclusion
ACC Ltd's decision to contest the penalties reflects its commitment to ensuring compliance with tax regulations and maintaining transparency in its financial reporting. The outcome of the appeals process will be closely watched by industry stakeholders and could have implications for corporate governance practices within the Adani Group's cement sector.
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