SRF flags ₹327 crore tax demand, calls it ‘technical error’, moves ITAT

SRF Ltd has disclosed, on Tuesday, April 7,  a tax demand of ₹327.44 crore for assessment year 2022-23, arising from what it termed a technical error in an order issued by the Assessment Unit of the Income Tax Department.The company said additions of ₹30.54 crore were made to taxable income under Section 143(3) of the Income Tax Act, 1961. However, due to a technical error, the total demand was computed at ₹327.44 crore, including interest of ₹101.77 crore under Section 234B.

SRF stated that it has filed a rectification application before the Assessing Officer on March 10, 2026, and has also filed an appeal before the Income Tax Appellate Tribunal (ITAT) on March 19, 2026 as a precautionary measure.
The management believes the demand is not legally sustainable and expects it to be reversed upon rectification of the error. The company added that there is no immediate impact on its financial, operational or other activities.
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The firm had reported a strong set of results for the December quarter. Its net profit surged 59.7% year-on-year to ₹432.7 crore, compared with ₹271 crore in the same period last year, while revenue rose 6.3% to ₹3,712.5 crore. EBITDA grew 26% to ₹780 crore, translating into a margin of 21% versus 20.9% in the same quarter last year.

SRF Ltd shares closed at ₹2,399.90 on the NSE on April 7, down ₹33.90 or 1.39% from the previous close. The stock witnessed a negative movement during the session.

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