Madhya Bharat Agro Products receives ₹7.20 Crore Income Tax Demand Notice
Madhya Bharat Agro Products Limited received a demand notice of ₹7.20 crore under the Income Tax Act, 1961, for AY 2024-25. The demand is related to outstanding trade payables to MSEs. The company disputes the adjustment, believing it's not legally compliant, and plans to appeal, expecting no material financial impact.
While a demand notice of ₹7.20 crore has been issued, the company is contesting it and believes there will be no material financial impact. The impact is therefore considered medium, pending the outcome of legal remedies.
The company has received a demand notice for ₹7.20 crore from the Income Tax Department, which is a negative development.
Madhya Bharat Agro Products Limited (MBAPL) has received a Notice of Demand under Section 143(3) of the Income Tax Act, 1961, dated March 31, 2026. This notice pertains to the Assessment Year 2024-25 and was received by the company on March 31, 2026. The demand amounts to ₹7.20 crore.
The assessment order, issued by the Assessment Unit of the Income Tax Department, primarily concerns an addition to the company's taxable income. This addition is related to outstanding trade payables to Micro and Small Enterprises (MSEs) as of March 31, 2024, with the grounds being that payments to these MSME vendors were not made within the prescribed legal time limits.
The company, however, believes this adjustment is not in accordance with applicable legal provisions and intends to contest the demand. MBAPL is confident in its case and plans to file a rectification petition and pursue legal remedies, including an appeal. Management is confident that there will be no material financial impact on the company. No penalty, restrictions, or sanctions have been imposed in the current order.
What to do with a filing like this
Madhya Bharat Agro Products Limited filed this with the NSE as a statutory disclosure, categorised under taxation. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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