India Pesticides faces ₹7.09 cr tax demand from search raid
The income tax demand for FY18-25 arises from a December 2024 search operation. Company says demand is not tenable and will appeal, with no material impact expected.
— 1 earlier story on India Pesticides Ltd. →What's new
- ₹7.09 cr demand from block assessment period April 2018 to February 2025.
- Arises from Dec 2024 search & seizure; additions of ₹10.12 cr for unexplained stock and unaccounted sales.
- Company calls demand untenable, evaluating appeal; no material impact expected.
Why this matters
The ₹7.09 cr demand is 5.8% of FY26 net profit of ₹120 cr — not crippling but material. Management's confidence and planned appeal provide a buffer, but the search itself signals heightened scrutiny. The outcome of litigation will determine whether this remains a one-off or a recurring overhang.
What we're watching
- Filing of appeal and timeline for adjudication.
- Any further tax notices from the same search operation.
- Impact on cash flow if demand is upheld.
The full read
India Pesticides faces a ₹7.09 crore income tax demand covering April 2018 to February 2025, stemming from a December 2024 search and seizure. The tax department added ₹10.12 crore for alleged unexplained stock and unaccounted sales. The company, backed by legal advice, says the demand is untenable and will appeal. The sum is 5.8% of FY26 net profit of ₹120 crore. Not trivial. No other demands from the search have surfaced yet. The outcome of the appeal will determine whether this tax dispute is a temporary overhang or becomes a recurring drag on the stock.
Questions answered
- What is the exact amount of the tax demand?
- India Pesticides received a notice of demand for ₹7.09 crore from the Income Tax Department.
- Why was the demand issued?
- It follows a search and seizure operation in December 2024 on the company and its group entities, leading to additions of ₹10.12 crore for alleged unexplained investment in stock and unaccounted sales.
- What period does the demand cover?
- The block period spans from April 2018 to February 2025.
- How has the company responded?
- Based on legal advice, the company considers the demand not tenable and is evaluating options to file an appeal.
- Will this affect the company's financials?
- Management expects no material financial impact. The demand of ₹7.09 cr represents about 5.8% of FY26 net profit of ₹120 cr.
- What happens next?
- The company will likely file an appeal; the tax department will then adjudicate. The process could take months or years.
India Pesticides Ltd.
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All notes on IPL →- 29 Jun 2026 · 6:41 PM IST India Pesticides faces ₹7.09 cr tax demand from search raid
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