SRF Flags ₹327 Crore Tax Demand, Cites 'Technical Error', Moves ITAT

• SRF Ltd disclosed a tax demand of ₹327.44 crore for assessment year 2022-23, calling it a 'technical error'.
• The company stated that additions of ₹30.54 crore were made to taxable income, but a technical error led to the inflated total demand.
• SRF has filed a rectification application with the Assessing Officer and an appeal with the Income Tax Appellate Tribunal (ITAT) as a precautionary measure.
• Management believes the demand is not legally sustainable and expects it to be reversed, with no immediate impact on operations.
• The disclosure was made under SEBI regulations due to the demand arising from a technical error, despite strong Q3 results.

Key Questions Answered

Will SRF's tax demand impact its future earnings?

SRF states the ₹327.44 crore tax demand will have no immediate impact on its financial or operational activities.

Could this 'technical error' affect other companies?

Yes, a technical error linked to sanctions could affect other companies. A software glitch in a private company impacted its services due to sanctions.