CG Power receives tax reassessment, liability Rs 236.74 crore

CG Power faces a revisionary income‑tax assessment for AY 2022‑23 that raises its tax liability to about Rs 236.74 crore; the company has appealed the order and the outcome will affect its cash flow and earnings in FY 2026‑27.

• Core Change: The Income Tax Department issued a revisionary assessment order (Section 263, Income Tax Act) disallowing unabsorbed depreciation loss of Rs 21,43,17,440, increasing the total tax claim for Assessment Year 2022‑23 to Rs 236,73,81,955.
• Effective Date: Revisionary assessment order dated 20 April 2026; public announcement made on 21 April 2026 (SEBI Listing Regulation 30 disclosure).
• Impacted Parties: CG Power and Industrial Solutions Ltd, its shareholders/investors, and the Income Tax Department, Ministry of Finance.
• Why (stated reason): The reassessment stems from the tax authority’s decision to disallow the company’s unabsorbed depreciation loss for the relevant year.
• Key Compliance / Legal Requirements:
  • Appeal filed with the Commissioner of Income Tax (Appeals) as per procedural rules under the Income Tax Act.
  • Ongoing SEBI disclosure obligations for material tax matters.
  • Potential settlement required if the appeal is unsuccessful, affecting liquidity and FY 2026‑27 earnings.