ACC Adani Fined for Misreporting Income – ₹23 Cr Penalty
ACC Adani fined for misreporting income– India’s Income Tax Department has levied a penalty of ₹23 crore on ACC Ltd. The cement company clarified that these issues occurred before its acquisition by the Adani Group. ACC became part of the conglomerate in September 2022, when Adani acquired both ACC and Ambuja Cements from Switzerland’s Holcim Group in a $6.4 billion deal.
Income Tax Penalties Stem from Pre-Adani Period
The penalties relate to two separate assessment years. For the financial year 2015–16, tax authorities disallowed ₹49.25 crore in expenses. As a result, the department imposed a penalty of ₹14.22 crore, which equals 100 percent of the tax impact. In the 2018–19 assessment year, ACC had reported ₹12.79 crore in expenses. These too were rejected. The resulting penalty came to ₹8.85 crore — 200 percent of the tax owed on that amount.
ACC emphasized that both penalties apply to a period before the Adani Group took control of the company. It said that the misreporting of income took place under the previous ownership and that the company is now focused on ensuring compliance under the new management.
Strong Financials Despite Regulatory Challenges
While the penalties are significant, they have not affected ACC’s financial performance. In the financial year 2024–25, the company reported revenue of ₹21,762 crore. It sold more than 39 million tonnes of cement during the same period. These figures indicate that ACC remains one of India’s top-performing cement producers.
The case of ACC Adani fined for misreporting income underlines the importance of transparency during corporate takeovers. Although the Adani Group was not involved in the alleged misreporting, the company now bears the responsibility of addressing its past financial issues. By openly acknowledging the penalties and their origin, ACC aims to rebuild confidence among regulators and stakeholders.
For readers interested in more background, the Adani Group’s official website offers detailed information about the acquisition. Additionally, the income tax Department provides updates on corporate tax regulations and penalties.
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