Adani group firm ACC Ltd., the cement giant, just got slapped with a hefty fine by the Income Tax (I-T) department. Let’s break down exactly what happened, why the penalty, and what the company is doing about it.
The I-T department imposed two separate penalties on ACC Ltd. that collectively total ₹23.07 crore. The company confirmed receiving these demands very recently, on October 1, 2025.
ACC Ltd. confirmed it received two separate penalty demands from the Income Tax Department on October 1, 2025, which collectively total ₹23.07 crore. The company was penalized for historical tax reporting issues in its filings. The total fine of ₹23.07 crore is split into two parts, dating back to periods before the Adani Group acquisition. The first and larger penalty is a whopping ₹14.22 crore related to the Assessment Year (AY) 2015-16 for allegedly “furnishing of inaccurate particulars of income.” This fine was imposed after the I-T Department disallowed expenses totaling ₹49.25 crore. The second penalty is ₹8.85 crore for AY 2018-19 due to alleged “under-reporting of income,” which arose from the disallowance of expenditure claims amounting to ₹12.79 crore.
Essentially, the fines stem from the I-T department alleging that ACC either provided incorrect income details or claimed expenditures they shouldn’t have during the filing for the Financial Years 2014-15 and 2017-18.
ACC is a subsidiary of Ambuja Cement, which was famously acquired by the Gautam Adani-led conglomerate in September 2022 in a massive $6.4 billion deal from Holcim Group.
However, here’s the key fact, as reported in ACC’s regulatory filings: both I-T demands—covering AY 2015-16 and AY 2018-19—relate to the period before the Adani Group took ownership. So, these are legacy tax reporting issues from the company’s past management.
The cement maker is definitely not taking this lying down. In its regulatory filing, ACC made it clear that it will be contesting both penalty orders.
The company will be filing appeals before the Commissioner of Income Tax (Appeals) within the prescribed timelines. In parallel, ACC is also seeking a stay on the penalty demands. The company is actively fighting back and has made its intentions clear in regulatory filings, stating: “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.”
For investors, the company tried to offer reassurance, stating firmly that these penalties “will have no impact on financial activity” of ACC Ltd. moving forward.
In short, while the I-T department has levied a substantial fine on the Adani Cement entity, the battle over the ₹23 crore penalty has just begun in the appellate courts.
