ACC Penalized ₹23 Crore in Two Cases
The Income Tax Department has imposed a penalty of ₹23.07 crore on ACC Ltd., the cement company owned by the Adani Group. The penalty relates to two separate cases of misrepresentation and underreporting of income.
₹14.22 crore penalty: Misrepresentation of income for 2015-16
₹8.85 crore penalty: Underreporting of income for 2018-19
The department disallowed expenses worth ₹49.25 crore for 2014-15, which led to misreporting of income.
ACC’s Response
In an official statement, ACC Ltd. said it will appeal the penalty order before the relevant authorities. The company maintains that it has complied with applicable tax regulations.
Adani Group’s Cement Acquisition
This penalty comes nearly two years after the Adani Group’s landmark entry into the cement sector:
In September 2022, Adani Group acquired Ambuja Cements and its subsidiary ACC Ltd. from Holcim Group in a $6.4 billion deal.
The acquisition made Adani one of the largest cement producers in India.
Final Word
The penalty of ₹23 crore on ACC adds to the challenges facing the Adani Group as it continues to expand its cement business. With the company set to appeal, the matter now moves into the legal process, and the final outcome remains to be seen.
