The Income Tax department imposed penalties totalling ₹23.07 crore on ACC Ltd for past assessment years: ₹14.22 crore for AY 2015-16 (furnishing inaccurate income particulars) and ₹8.85 crore for AY 2018-19 (under-reporting of income).
ACC Ltd will contest both penalties before the Commissioner of Income Tax (Appeals) and seek a stay on the demands.
The penalties relate to periods before ACC became part of the Adani Group; Adani acquired ACC via Ambuja Cements in September 2022 for USD 6.4 billion.
The penalties are linked to disallowed expenses of ₹ 49.25 crore (AY 2015-16) and ₹12.79 crore (AY 2018-19).
The Income Tax (I-T) department has imposed two separate fines on ACC Ltd, totalling ₹23.07 crore, which will be contested by the Adani Group firm before the appellate authorities.
The I-T department has slapped a penalty of ₹14.22 crore allegedly "for furnishing of inaccurate particulars of income" for Assessment Year 2015-16.
The department has also levied a penalty amounting to ₹8.85 crore "for under-reporting of income" for Assessment Year 2018-19.
"The company will be contesting both orders by filing appeals before the Commissioner of Income Tax (Appeals) within the prescribed timelines and, in parallel, will seek a stay on the penalty demands raised under the respective orders," ACC said in regulator filings on Thursday.
The company received these two demands on October 1, 2025, and said that these penalties will have no impact on financial activity.
ACC is a subsidiary of Ambuja Cement, the Adani Cement entity, which owns over 50% of the company. Both the I-T department demands are for the period before it became part of the Billionaire Gautam Adani-led group.
In September 2022, Adani Group acquired Ambuja Cements and its subsidiary ACC Ltd from Switzerland's Holcim Group in a USD 6.4 billion deal.
The I-T department has levied a penalty under section 271(1)(c) for the Assessment Year 2015-16.
"For Financial Year 2014-15 relevant to Assessment Year 2015-16, the I-T department had disallowed certain expenses aggregating to ₹49.25 crore and consequently alleged such adjustments as furnishing inaccurate particulars of income to the extent of such disallowances," the filing said.
Consequent to the same, the I-T Department has now imposed a penalty amounting to ₹14.22 crore, i.e, 100% of the tax effect of the aforesaid disallowances.
While in the second demand, the I-T department for the Assessment Year 2018-19 had "disallowed claim for expenditure amounting to ₹12.79 crore and accordingly alleged under-reporting of income to that extent".
"Consequent to the said disallowance, the Income Tax Department has levied a penalty amounting to ₹8.85 crore, i.e., 200% of the tax effect of the aforesaid disallowances," it said.
As per its latest annual report, ACC's revenue from operations in FY25 was ₹21,762 crore, along with a cement sales volume of 39 million tonnes.
Shares of ACC Ltd were trading at ₹1,835.25 apiece on the BSE in the afternoon trade, up 0.33% from the previous close.
