The Commissioner of Income-tax (Appeals) deleted additions related to securities premium and land for Assessment Year 2024–25. The company said the exact revised tax liability will be known after the Assessing Officer gives effect to the order.
BKK Bureau, New Delhi | 18 October 2026 | 8:56 PM IST
Paramount Dye Tec Limited has informed the National Stock Exchange of India that its appeal against an income-tax assessment for Assessment Year 2024–25 has been partly allowed by the Commissioner of Income-tax (Appeals). The appellate order was issued under Section 250 of the Income-tax Act, 1961, in Appeal No. NFAC/2023-24/10583232.
The order relates to an assessment dated March 25, 2026. According to the company’s exchange filing, its returned income of Rs. 4,31,44,220 was assessed at Rs. 44,26,51,389, resulting in a tax demand of Rs. 39,81,42,410. The company disclosed the appellate action to the NSE on October 18, 2026, after receiving the order dated October 13, 2026.
The appellate authority deleted an addition of Rs. 26,75,71,990 made on account of securities premium under Section 68 read with Section 115BBE of the Income-tax Act. It also deleted a separate addition of Rs. 12,71,08,000 relating to land under Section 69 read with Section 115BBE.
The order also dealt with the company’s commission and other expenses. The original disallowance of Rs. 48,27,179 under Section 37 was restricted to Rs. 4,82,718. The filing states that interest will be recomputed by the Assessing Officer when the appellate order is implemented.
Paramount Dye Tec said the order did not impose any fine or penalty. It also stated that the company’s exact revised liability could not be determined at this stage because the Assessing Officer must first issue an order giving effect to the appellate decision in accordance with law.
Details of the appellate outcome
- Assessment year: 2024–25.
- Returned income: Rs. 4,31,44,220.
- Income assessed: Rs. 44,26,51,389.
- Demand stated in the assessment: Rs. 39,81,42,410.
- Securities premium addition of Rs. 26,75,71,990: deleted.
- Land-related addition of Rs. 12,71,08,000: deleted.
- Commission and other expense disallowance reduced from Rs. 48,27,179 to Rs. 4,82,718.
- Interest: to be recomputed.
- Fine or penalty: none imposed under the appellate order.
The company said there was no impact on its operations or other activities from the order. The filing does not state the final amount payable after the deletions and the revised expense disallowance. That amount will depend on the computation made by the Assessing Officer while giving effect to the appellate decision.
The disclosure concerns the tax treatment of specific items included in the earlier assessment. The appellate order partly allows the company’s appeal rather than disposing of all issues in its favour, as the expense disallowance was reduced but not fully eliminated and interest remains subject to recomputation.
Why it matters
The order removes two substantial additions from Paramount Dye Tec’s assessment and materially reduces the disputed expense disallowance, but the company’s final tax liability remains pending until the Assessing Officer recomputes interest and gives effect to the appellate decision.
Source: National Stock Exchange of India
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