Home Taxes Income Tax Century Enka Limited Receives Rs 38.30 Lakh Income Tax Penalty Order for...

Century Enka Limited Receives Rs 38.30 Lakh Income Tax Penalty Order for AY 2020-21

February 25, 2026

Century Enka Limited has received an income tax penalty order of Rs 38,29,964 from the National Faceless Assessment Centre for assessment year 2020-21. The penalty, calculated at 200% of Rs 19,14,982 tax on underreported income under section 270A, arose from differences between filed and assessed income. The company plans to contest the order and expects no material financial impact.

Century Enka Limited has received a penalty order from the Income Tax Department’s National Faceless Assessment Centre for assessment year 2020-21. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015.

Penalty Details and Assessment

The Income Tax Department has imposed a penalty of Rs 38,29,964 under section 270A of the Income Tax Act. This penalty amount represents 200% of the calculated tax of Rs 19,14,982 on underreported income, as specified under section 270A(10)(a) for assessment year 2020-21.

Parameter	Details
Penalty Amount	Rs 38,29,964
Calculated Tax	Rs 19,14,982
Penalty Rate	200% of calculated tax
Assessment Year	2020-21
Legal Section	270A of Income Tax Act

Nature of Violation

The penalty stems from a difference between the returned income filed by the company and the assessed income as determined by the Assessment Order passed under section 143(3) of the Income Tax Act. The National Faceless Assessment Centre identified this discrepancy during its assessment process for the relevant financial year.

Company’s Response and Impact Assessment

Century Enka Limited has indicated that it plans to contest the demand raised by the tax authorities. The company has stated in its disclosure that it does not expect the penalty order to have any material financial impact on its operations. The demand notice was received by the company on February 25, 2026.

Regulatory Compliance

The disclosure was made in compliance with regulatory requirements, with the company informing both BSE Limited and the National Stock Exchange of India about the development. The communication was signed by Rahul Dubey, VP-Legal & Company Secretary of Century Enka Limited, ensuring proper corporate governance protocols were followed in the disclosure process.