Gujarat State Petronet Flags ₹77.76 Crore Tax Demand Error For FY24 Assessment
· Free Press Journal
Gandhinagar: A routine tax assessment has turned into a technical dispute for GSPL, after the company identified what it calls a clear calculation mistake in the tax department’s order.
Demand stems from error
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The company received a scrutiny assessment order under Sections 143(3) and 144B of the Income-Tax Act from the Assessment Unit of the Income Tax Department on 23 March 2026. While the order accepted GSPL’s declared income for FY 2023-24 without any additions or disallowances, a mismatch in the computation sheet triggered a tax demand of Rs 77.76 crores.
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According to the filing, the department incorrectly considered total income at Rs 1683 crore instead of the reported and accepted Rs 1435 crores. This inflated the taxable base by Rs 248 crores, directly leading to the demand, including interest. GSPL emphasized that the assessment itself carries no adverse findings, with the issue limited to the calculation sheet.
Company rejects liability
GSPL clarified that the discrepancy is a “mistake apparent on record” and not linked to any violation or non-compliance. Company Secretary Rajeshwari Sharma indicated that the firm sees this as a technical error by the tax authority rather than a substantive tax dispute, reinforcing that the underlying assessment remains clean.
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The company plans to file a rectification application with the Assessing Officer, along with a request to stay the demand. GSPL expressed confidence that once the correction is processed, the entire demand will be nullified. It also stated that no material financial impact is expected at this stage.
GSPL’s disclosure underscores how procedural errors in tax computations can create temporary financial concerns, even when core assessments remain undisputed, with resolution now hinging on administrative correction.
Disclaimer: This article is based on company disclosures and regulatory filings. Figures and interpretations rely on reported data, and actual outcomes may change subject to regulatory review, rectification, or further official clarification.