ACC Limited Faces Rs. 23.07 Crores Tax Penalty, Plans Appeal Amid Strong Financial Performance
The Income Tax Department has imposed penalties (in total worth Rs. 23.07 crore) on ACC Limited, which stands for Associated Cement Companies Limited, part of the Adani Group. The company claims that the penalty is unfair, hence planning to challenge it before the appellate authority. The company received the penalty orders on October 1, 2025, and highlighted that this action will have no impact on the company’s financial operations.
The first penalty is for Rs 14.22 crore and belongs to the assessment year 2015-16, imposed for incorrectly filing particulars of income. The second penalty is for Rs. 8.85 crore, belongs to the assessment year 2018-19, and is imposed for under-reporting income.
In September 2022, the Adani Group bought Ambuja Cements and its smaller company ACC Ltd. from the Swiss company Holcim Group for $6.4 billion. Now, Adani Cement owns more than 50% of ACC.
On Thursday, ACC Limited, in a regulatory filing to the stock exchange, asserted that it feels both the penalty orders are unfair; therefore, it will challenge both orders before the Commissioner of Income Tax (Appeals) within the statutory deadlines. Additionally, will urge to stay the penalty raised in the orders.
In accordance with the regulatory filing, the penalty of the assessment year 2015-16 is imposed under Section 271(1)(c).
For the financial year 2014-15 (related to assessment year 2015-16), the Income Tax department said that ACC gave incorrect details about its income and therefore did not allow certain expense claims worth Rs 49.25 crore. Because of this reason, the department charged a penalty of Rs 14.22 crore, which is equal to the full amount of tax that would have been paid on those disallowed expenses.
For the assessment year 2018-19, the department again rejected expense claims worth Rs 12.79 crore, saying ACC had not reported its income properly. This time, a penalty of Rs 8.85 crore was imposed, which is double the tax that would have been paid on the disallowed amount.
Even after imposing this hefty penalty, the company highlights a robust financial performance in the market. According to the latest annual report, the company has reported its total revenue as Rs. 21,762 crore for the financial year 2024-25 and cement sales volume of 39 million tonnes.
