NEW DELHI: The Income Tax (I-T) department has issued two penalties to ACC Ltd, totaling Rs 23.07 crore, which the Adani Group company plans to challenge in appellate authorities.
The I-T department has imposed a fine of Rs 14.22 crore for allegedly providing inaccurate income details for the Assessment Year 2015-16.
Additionally, a penalty of Rs 8.85 crore has been levied for under-reporting income for the Assessment Year 2018-19.
“The company will contest both orders by appealing to the Commissioner of Income Tax (Appeals) within the designated timelines and will concurrently seek a stay on the penalties,” ACC stated in its regulatory filings on Thursday.
The fines were communicated to the company on October 1, 2025, and ACC noted that these penalties will not affect its financial operations.
ACC, a subsidiary of Ambuja Cement—which is owned by the Adani Group, possessing over 50% of the company—notes that these penalties pertain to the time before ACC became part of Gautam Adani’s conglomerate.
In September 2022, the Adani Group acquired Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group in a deal valued at USD 6.4 billion.
The I-T department applied the penalty under section 271(1)(c) for the Assessment Year 2015-16.
“For the Financial Year 2014-15 relevant to Assessment Year 2015-16, the I-T department disallowed certain expenses totaling Rs 49.25 crore, suggesting that these adjustments constituted the provision of inaccurate income particulars to such an extent,” the filing indicated.
Consequently, the I-T Department imposed a penalty of Rs 14.22 crore, equivalent to 100% of the tax effect from the disallowed amounts.
In the second incident, for the Assessment Year 2018-19, the department disallowed claims for expenditures amounting to Rs 12.79 crore, alleging under-reporting of income.
“As a result of this disallowance, a penalty of Rs 8.85 crore has been applied, amounting to 200% of the tax effect from the disallowed claims,” the department explained.
According to its most recent annual report, ACC’s operational revenue in FY25 was Rs 21,762 crore, with cement sales reaching 39 million tonnes.
ACC Ltd shares were trading at Rs 1,835.25 on the BSE during afternoon trading, which represents a 0.33% increase from the previous close.
