Income Tax Department imposes penalty of Rs.67,90,07,293 for AY 2009-10; company to appeal

Shriram Finance received an Income Tax order dated September 29, 2026 levying a penalty of Rs.67,90,07,293/- for Assessment Year 2009-10 under Section 271(1)(c).

Wed 30 Sep 2026

Penalty Amount

Rs.67,90,07,293/-

Assessment Year

2009-10

Penalty Section

Section 271(1)(c) of the Income Tax Act, 1961

Disallowed Deduction Claim

Rs.199,76,67,825/-

What happened

The company received an order dated September 29, 2026 from the Assessment Unit of the Income Tax Department imposing a penalty of Rs.67,90,07,293/- for Assessment Year 2009-10. The penalty is levied under Section 271(1)(c) of the Income Tax Act, 1961.

Ground cited by the authority

• Alleged incorrect claim of deduction of Rs.199,76,67,825/-, which the department says reduced the company's taxable income for Assessment Year 2009-10.

Company's position

• States there is no material impact on financial, operational or other activities.
• Says it has strong merits in its case and a fair chance of the demand being quashed in appellate proceedings.
• Will file an appeal before the first Appellate Authority within the prescribed time limit.

What it means for investors

Section 271(1)(c) penalties relate to concealment or inaccurate particulars of income, and are commonly contested through the appeal route. The amount is a demand at this stage, and the outcome will depend on the appellate process. Investors can track further updates for the appeal update and any stay or revision of the demand.

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