5047412026-09-225047412026-09-22in-capmkt:AtTheTimeOfBecomingPartyToLitigationOrAssessmentOrAdjudicationOrArbitrationOrDisputeMember5047412026-09-22OppositePartyAsPerSubPara8OfParaBDomain1INDIANHUMETHE INDIAN HUME PIPE COMPANY LIMITED504741NOTLISTEDINE323C01030Pendency of any litigation(s) or dispute(s) (Sub-para 8-Para B)At the time of becoming the party to any litigation, assessment, adjudication, arbitration or disputeNewfalse2026-09-2121:28:002026-09-22Assessment Unit, Income Tax Department, NAFAC, Delhi.2026-09-22TribunalAssessment Unit, Income Tax Department, NAFAC, Delhi.CompanyThe Indian Hume Pipe Company LimitedThe Company is in receipt of order dated 21st September 2026 passed by the Assessment Unit, Income Tax Department, NAFAC, Delhi under Section 270A of the Income Tax Act, 1961 for Assessment Year 2024-2025 levying penalty amounting to Rs. 40,39,078/- being 200% of tax amount (Rs.20,19,539/-) on account of alleged under reporting of income in consequences of mis-reporting of income. The basis of said penalty is due to an arithmetical error in the return of income filed by the Company for the assessment year under consideration amounting to Rs. 58,84,439/. The said arithmetical error was rectified during the course of the assessment proceedings and income of Rs. 58,84,439/- was offered to tax. The due tax on such income stands paid by the Company on March 31, 2026. In response to notice dated 27th March 2026 issued under section 274 of the Act proposing to levy penalty, a detailed reply dated 20th April 2026 was filed by the company justifying that no penalty is leviable under the Act for mere arithmetical errors. Ignoring the said written submission of the company, the Assessment Unit, NAFAC, Delhi passed the impugned order. The order has computed penalty by taking rate of Corporate Tax @ 30% whereas the company is assessed to tax @ 22%.Company will be moving rectification petition for correct quantification of the penalty. The Company will prefer an appeal against the said order dated 21st September 2026 before the Commissioner of Income Tax (Appeals), NAFAC, Delhi challenging the penalty so imposed. The Company believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter. Accordingly, the Company expects that entire demand to subside. As such, there is no material impact on financial, operational or other activities of the Company.As per Clause A(iii) above.