CG Power Share Price in Focus; Gets ₹350.37 Crore Tax Demand for AY 2018-19

CG Power and Industrial Solutions Ltd has received a final income tax assessment for the financial year 2017-18 (AY 2018-19). As per the exchange filings, the assessment order, issued on 19 November 2025, has raised a total demand of ₹365.37 crore (₹365,37,21,581/-).  

The order follows scrutiny under Section 143(3) read with Section 144C (13) of the Income Tax Act, 1961, where the department has made various additions and disallowances to the company’s return.  

Background of the Case 

This development is connected to a previous judgement by the Bombay High Court on 30 April 2024, which allowed CG Power to submit revised income tax returns for multiple financial years.  

These revised returns were permitted because the company’s accounts had been recast. The direction covered six years, from FY 2014-15 to FY 2019-20, and the Court instructed the Central Board of Direct Taxes (CBDT) to accept and process these returns.  

Dispute with the Tax Department 

The present demand arises from changes made by the tax authorities while examining CG Power’s revised return for AY 2018-19. The assessing officer has made certain disallowances and income additions, resulting in the multi-crore demand. The matter has been marked under litigation with the Income Tax Department, Ministry of Finance, and the disclosure has been made under Regulation 30 of SEBI Listing Regulations as required for such cases.  

Company Plans Further Action 

As per the exchange filings, CG Power has stated that it intends to challenge the tax order. The company is preparing to file an appeal against the disallowances and will also submit an application seeking rectification of mistakes in the order. The disclosure notes that this process will follow the legal route available under income tax laws.  

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CG Power and Industrial Solutions Share Price Performance 

As of November 20, 2025, 09:42AM, CG Power and Industrial Solutions share price was trading at ₹719.40, a 0.65% decline from the previous closing price. 

Conclusion 

The tax issue remains unresolved, with the company set to contest the ₹365.37 crore demand. The matter will now move to appellate proceedings while the assessment continues to remain part of ongoing tax litigation. 

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