Globe Civil Projects544424Ongoing legal dispute

Company receives copy of Income Tax complaint for prosecution in FY2017-18 TDS delay matter

Globe Civil Projects has received a copy of a complaint shared by the Income Tax Department for prosecution over delay in depositing TDS for FY2017-18.

By ScoutQuest · Sat 24 Oct 2026, 3:53 PM IST · 2 min read

Maximum Liability: maximum liability of Two Million
Period: FY2017-18
Statutory Provisions: section 276B read with 278B of the Income Tax Act, 1961

What the company has said

It has received a copy of a complaint shared by the Income Tax Department, through the Deputy Commissioner of Income Tax, Circle-74(1), Delhi.
The complaint is for prosecution under section 276B read with section 278B of the Income Tax Act, 1961 for FY2017-18, relating to delay in deposit of TDS.
It has been shared in the Court of the Ld. ACJM (Special Acts), Central District, Tis Hazari Courts, Delhi.
The Directors cum promoters have also been included as accused/respondent in the petition.
The company is disclosing this as an update on litigation relating to the period before its listing.

Background the company has set out

Before listing, the company had received a show-cause notice from the Income Tax Department asking why prosecution should not be initiated in the matter. This was mentioned in Note No. 44 of the Red Herring Prospectus shared on June 14, 2025.
The company made multiple submissions before the Commissioner of Income Tax (TDS)-1, New Delhi, requesting that the proceedings be dropped.
Its stated ground is that the relevant TDS was deposited before the update of the Tax Audit Report for FY2017-18.
It says all applicable interest and late fee have been paid, and that no liability in respect of this matter remained outstanding in its books as at the relevant balance sheet date.

Where the matter stands

The company describes the matter as compoundable in nature with a maximum liability of Two Million.
It is presently pending before the court, and the company says it shall take appropriate steps in accordance with applicable law.
The update states that settlement details are not applicable at this stage.

What this means for a retail investor

This is a status update on a tax matter that predates the listing, not a new tax demand raised on current operations.
The development is that a prosecution complaint has now been shared in court, and that the company's directors and promoters are named as accused along with the company.
The company's position is that the underlying TDS, interest and late fee stand paid and no liability is outstanding; the case will be decided by the court.
The company itself puts the maximum liability in the matter at Two Million, and says the matter is compoundable.
The company has not reported any financial impact from this development in this update.