Indian Hume Pipe faces ₹40.39 Lacs IT penalty for AY24-25

Indian Hume Pipe Company Ltd received an order from the Income Tax Department, NAFAC, Delhi, dated September 21, 2026. The order levies a penalty of ₹40,39,078/- under Section 270A of the Income Tax Act, 1961, for Assessment Year 2024-2025. This penalty, 200% of the tax amount, is for alleged under-reporting of income due to an arithmetical error. The company states the error was rectified, and the tax on ₹58,84,439/- was paid by March 31, 2026. Despite the company's detailed reply arguing against the penalty for mere arithmetical errors and highlighting an incorrect tax rate (30% instead of 22%), the order was passed. The company plans to file a rectification petition and appeal the order, confident in its legal grounds and expecting no material financial or operational impact.