Refex Industries532884Tax or GST

CIT(A) Partly Allows Appeal; Rs. 17.48 crore LTCG Addition Remanded, Depreciation Disallowance Deleted

Refex Industries received a CIT(A) order dated Oct 14, 2026 for AY 2014-15.

By ScoutQuest · Thu 15 Oct 2026, 1:56 PM IST · 2 min read

The company has disclosed an income tax appellate order.

Refex Industries received an order dated October 14, 2026 from the Commissioner of Income Tax (Appeals)-20, Chennai, passed under Section 250 of the Income Tax Act, 1961.
The order disposes of the company's appeal against a reassessment order dated March 31, 2022, passed under Section 143(3) read with Section 147, for Assessment Year 2014-15.
The appeal has been partly allowed.

Long-Term Capital Gains of Rs. 17.48 crore on transfer of land, building and machinery, computed by invoking Section 50C on the basis of guideline value.
Disallowance of excess depreciation of Rs. 36.4 lakh claimed on alleged additions to transformers.
The original tax and interest demand was Rs. 8.21 crore on an assessed income of Rs. 17.84 crore. This demand was subsequently reduced to Rs. 7,51,16,883/- pursuant to a rectification order dated May 10, 2023.

Upheld the validity of the reassessment proceedings initiated under Section 147.
Directed the Assessing Officer to obtain the final value adopted or assessed by the competent stamp valuation authority pursuant to proceedings under Section 47A of the Indian Stamp Act, 1899 for the land in question.
Directed deletion of the depreciation disallowance of Rs. 36.4 lakh.
The Long-Term Capital Gains addition has been remanded to the Assessing Officer for fresh quantification, rather than being finally determined or deleted.

The company states the order is favourable, as the depreciation disallowance has been deleted in entirety, confirming its position that the addition was factually unsupported.
The company is evaluating the order, including the directions issued to the Assessing Officer, and will take appropriate legal steps, including update a further appeal before the Income Tax Appellate Tribunal to the extent permissible and warranted.
The matter will be accounted for in its books and financial statements as may be required under applicable accounting standards, with further disclosures upon crystallisation of the final tax liability, if any.

One part of the dispute, the excess depreciation disallowance of Rs. 36.4 lakh, has been decided in the company's favour at this stage.
The larger item, the Long-Term Capital Gains addition of Rs. 17.48 crore, is not finally settled: the appellate authority has sent it back to the Assessing Officer to be quantified afresh, so the outcome for that amount remains open.
The reassessment proceedings themselves have been held valid, and the company has said a further appeal before the ITAT is possible.

Also from Refex Industries

23 Oct 2026

23 Oct 2026

22 Oct 2026