CG Power and Industrial Solutions on Monday said that the Bombay High Court has quashed an assessment order of Rs 684.08 crore against the company issued by the I-T department.

The court quashed the tax demand notice during a hearing on Monday, a regulatory filing by the company stated.

“Further to our captioned letter regarding a demand of Rs 684.08 crore received from the Income-Tax Department based on an Assessment Order dated 18th February 2022 in respect of the Assessment Year 2018-19, we wish to inform you that the Bombay High Court, at the hearing held today i.e. 21st February 2022, has quashed the said Assessment Order and the demand made based on the said Assessment Order,” the filing said.

Earlier on February 19, 2022, the company had stated in a BSE filing that that it had received a draft assessment order and notice from the Income Tax Department on its proposal to make certain additions in respect of assessment year 2018-19 (i.e. for financial year 2017-18) based on the original financial statements of the company for the financial year 2017-18.

As disclosed to the stock exchanges in the past, the financial statements of the company for the financial year 2017-18 have been recast based on the order of the National Company Law Tribunal, Mumbai Bench and such recast accounts have become final, with NCLT taking it on record on 26th October 2021, and the Original financial statements ceasing to be valid in law, it had stated.

The company had brought to the notice of the Income Tax Department about the recast of the financial statements and disputed the proposal of the Income Tax department to include additional income based on assessment of old financial statements, which ceased to be valid and that assessment has to be done only on the basis of recast accounts, it had stated.

The company had also filed a writ petition before the Bombay High Court on 14th February 2022 challenging the proposal of the IT department, it had stated.

The Court had given an ad interim injunction till 21st February 2022 restraining the Department from proceeding with the assessment, it had stated.