The Income Tax (I-T) department has levied two separate penalties on ACC Ltd, totalling Rs 23.07 crore, which the Adani Group-owned cement company plans to contest before the appellate authorities.
The first penalty, amounting to Rs 14.22 crore, relates to Assessment Year (AY) 2015-16 and has been imposed for allegedly “furnishing of inaccurate particulars of income.” The second, Rs 8.85 crore, pertains to AY 2018-19 and concerns “under-reporting of income.”
What ACC Cement Said?
In a regulatory filing on Thursday, ACC said, “The company will be contesting both orders by filing appeals before the Commissioner of Income Tax (Appeals) within the prescribed timelines and, in parallel, will seek a stay on the penalty demands raised under the respective orders.”
The company received both penalty notices on October 1, 2025, and emphasised that these demands would have no impact on its financial operations.
Both penalties relate to periods before ACC became part of the Adani Group. In September 2022, the Adani Group acquired Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group in a USD 6.4 billion deal. Currently, Adani Cement holds over 50% stake in ACC.
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ACC Cement Financial Results
According to the filing, the penalty for AY 2015-16 has been imposed under Section 271(1)(c).
For Financial Year 2014-15 (relevant to AY 2015-16), the I-T department had disallowed certain expenses aggregating Rs 49.25 crore, alleging that ACC furnished inaccurate particulars of income to that extent.
Consequently, the department has levied a penalty of Rs 14.22 crore, which is 100% of the tax effect of the disallowed expenses.
For AY 2018-19, the department disallowed expenditure claims worth Rs 12.79 crore, alleging under-reporting of income. ACC has been asked to pay a penalty of Rs 8.85 crore, representing 200% of the tax effect of the disallowances.
Despite the penalty notices, ACC continues to demonstrate strong financial performance.
As per its latest annual report, the company reported revenue from operations of Rs 21,762 crore in FY25, along with a cement sales volume of 39 million tonnes.
On the stock market front, ACC shares closed at Rs 1,848 apiece on the BSE, up 1% from the previous close.
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