1. At a Glance

CG Power and Industrial Solutions just got slapped with a ₹468 crore tax demand for AY 2021–22. The Income Tax Department believes the company owes big money due to certain disallowances and additions. CG Power, however, says, “Nice try, see you in court,” and plans to appeal.

2. Intro – Why This Matters

Picture this: you open your mailbox expecting a birthday card, but instead, it’s a ₹468 crore tax bill. That’s the corporate equivalent of being gifted a brick by Santa. For CG Power, this isn’t just about the money; it’s about reputation, legal battles, and the joy of fighting with the Income Tax Department — an institution more persistent than your Wi-Fi provider.

Key stat check:

• Tax Demand: ₹467.76 crore
• Assessment Year: 2021–22
• Regulatory Drama: SEBI Regulation 30 disclosure

3. Deep Dive – What’s the Deal?

Here’s the forensic breakdown:

• Who’s the other side? Income Tax Department, Ministry of Finance.
• Why the fuss? Additions and disallowances under Section 143(3) r.w.s 144C(13) r.w.s 144B of the Income Tax Act.
• When? Assessment Order received on July 25, 2025.
• Execution model: A good old-fashioned assessment leading to a massive demand.

In short, the IT Department says, “Pay up.” CG Power replies, “Hold my legal opinion.”

4. Strategic Impact – What Changes Now?

Let’s be clear: ₹468 crore is no pocket change. While CG Power insists they have a strong case (read: “our lawyers are sharpening their pencils”), the mere existence of this demand could:

• Rattle investor nerves (cue stock price jitters)
• Trigger provisioning if the case drags on
• Distract management from focusing on actual business rather than legal ping-pong

5. Risks & What to Watch

• Execution Risk: Appeals take forever in India. By the time this is resolved, AI might be filing taxes.
• Financial Impact: If they lose, the hit is real and heavy.
• Regulatory Scrutiny: SEBI disclosure means everyone’s watching, including your nosy neighbour who reads financial news.

Remember, “a fair chance of success” is lawyer-speak for “we’re optimistic, but pack a raincoat.”

6. Edu Take™ – Final POV

The Income Tax Department’s demand is like that ex who keeps texting for money they think you owe. CG Power is confident they’ll win, citing jurisprudence and legal opinions. Investors, meanwhile, should grab popcorn. This legal drama might have more twists than a Netflix thriller.

Not a deathblow, but definitely a bump on the road. Watch how the appeal unfolds — because in India, tax disputes have more seasons than Game of Thrones.

Written by EduInvesting Team | 26 July 2025
Tags: CG Power, Tax Dispute, ₹468 Cr Demand, Edu Style Article, SEBI Regulation 30, EduInvesting Premium