Bajaj Electricals shares slid 5.81% on Friday, October 30, closing at a 52-week low of ₹263.25. The selloff followed the company’s Friday disclosure of a ₹112.32 crore tax demand, including interest, for Assessment Year 2019-20. It’s the stock’s second consecutive down day, capping a brutal run where shares have shed 44.28% this year and nearly 50% over the past 12 months.
The demand stems from the Income Tax Department’s National Faceless Assessment Centre, which issued the order on October 29 under Section 147 of the Income Tax Act, 1961. The department disallowed specific expenses the company claimed for the 2018-19 financial year, effectively increasing the taxable income base. Section 147 allows reassessment when income is believed to have escaped initial assessment, a process conducted entirely online without direct taxpayer-officer meetings.
Bajaj Electricals pushed back on the math. The filing notes the Assessing Officer failed to provide credit for taxes already paid and omitted interest under Section 244A, which covers refunds. The company labeled these as omissions, arguing the net liability is overstated. Management is now evaluating legal avenues, including a rectification application to correct these mistakes or an appeal to a higher authority.
Despite the headline number, the company insists the order won’t disrupt day-to-day operations. Any financial hit, they say, is capped at the demand amount plus potential penalties. For context, this is a retrospective issue—AY 2019-20 covers income earned almost eight years ago. The market, however, reacted sharply, with the stock’s 52-week low signaling deepening investor anxiety over the company’s valuation and recent performance.
The broader picture for Bajaj Electricals remains shaky. With shares down nearly half in a year, this tax controversy adds another layer of uncertainty. Investors will watch for the outcome of the potential rectification application and any further regulatory disclosures. For now, the ₹112.32 crore figure sits as a cloud over a stock already struggling to find a floor.