Bajaj Electricals faces ₹112.32 crore tax demand tied to 2019-20 assessment

what happened

Bajaj Electricals Limited says the tax authority has sent it a demand worth ₹112.32 crore, interest included, for assessment year 2019-20. The company disclosed this in a regulatory filing on Friday, October 31, according to TradingView.

The National Faceless Assessment Centre passed the ruling on October 29, relying on Section 147 of the 1961 income tax law. The tax department rejected certain expenses the company had claimed as deductions. Bajaj Electricals argues that the assessing officer did not credit taxes it had already paid, nor interest due under Section 244A.

Management is considering legal steps, including a rectification request asking the authority to fix a mistake in the order, or an appeal to a higher body. The company expects any financial impact to be limited to the demand and any penalty, with no effect on its day-to-day operations.

why it matters

The sum is modest on its own, but the stock was already under pressure. Shares fell 5.81% on October 30, touched a 52-week low of ₹263.25, and are down 44.28% so far this year. The company's next moves on the rectification request or appeal will show how long the dispute runs.

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