Zinka Logistics Solutions Limited, popularly known by its stock symbol BlackBuck, has informed the stock exchanges about a recent TDS-related demand order issued by the Income Tax Department. As per the company’s disclosure filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Assistant Commissioner of Income Tax (TDS), Bengaluru, has issued an order dated February 08, 2025 (received by the company on July 07, 2025), demanding a total of ₹28,55,872 (Rupees Twenty-Eight Lakh Fifty-Five Thousand Eight Hundred Seventy-Two only) for the financial year 2017-18.

This demand was raised under Sections 201(1) and 201(1A) of the Income-tax Act, 1961, alleging non-deduction of tax at source on certain expenses which, according to the department, were liable for TDS as highlighted in the company’s Tax Audit Report (Form 3CA) under Section 44AB of the Income-tax Act.

Nature and Details of the Order

The order issued by the Assistant Commissioner of Income Tax (TDS), Bengaluru, pertains to TDS defaults related to FY 2017-18. The department has assessed that BlackBuck failed to deduct tax at source on specific expenses, thus attracting both principal liability under Section 201(1) and interest liability under Section 201(1A). The cumulative amount payable stands at ₹28.55 lakh, inclusive of interest.

As per the company’s formal disclosure to NSE and BSE on July 08, 2025, the BlackBuck tax order FY18 does not have any material financial implications on the business. However, the company intends to challenge the order through a legal appeal, reiterating that it has a strong case on merits.

Company’s Response and Compliance

The company, in its stock exchange filing referencing BLACKBUCK/CORP/2025-26/48, stated:

“We believe that we have a strong case on merits. The Company will be filing an appeal against the order before the appropriate authority.”

This disclosure has been made in compliance with SEBI circular no. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, which mandates detailed reporting of regulatory or tax-related actions under SEBI Regulation 30.

The BlackBuck SEBI disclosure July 2025 has also included Annexure I, which provides itemized information regarding:

• The authority involved: Assistant Commissioner of Income Tax (TDS), Bengaluru.

• Nature of action: Order confirming demand under Sections 201(1) and 201(1A) for TDS default.

• Date of receipt: July 07, 2025.

• Expected implications: Not material, and an appeal will be filed.

Context: TDS Compliance and Corporate Responsibility

Under the Indian Income-tax Act, Section 201(1) deals with the consequences when an assessee (in this case, BlackBuck) fails to deduct tax at source (TDS). The section empowers the tax authorities to deem the assessee as an assessee-in-default, and levy the amount of TDS not deducted along with interest under Section 201(1A).

This regulation is particularly critical for companies whose audited financials, including the Form 3CA, have identified potential TDS obligations which may later be flagged by authorities as non-compliant.

In BlackBuck’s case, the Form 3CA Tax Audit Report had previously indicated that certain expenses were liable for TDS during FY 2017-18. This report is part of the mandatory tax audit for businesses exceeding prescribed turnover thresholds under Section 44AB.

The ₹28.55 lakh IT demand BlackBuck now faces includes penal interest along with the base TDS amount on those identified expenditures.

Financial Implications and Appeal Strategy

BlackBuck has clearly stated that the said order has no material financial implication for the company. The ₹28.55 lakh demand is relatively insignificant in comparison to the company’s overall revenue and financial operations. However, the company is proceeding with an appeal before the appropriate tax appellate authority, indicating its intent to contest the ruling and seek relief.

It is standard practice for listed entities like BlackBuck to proactively disclose such tax orders, irrespective of size or materiality, in accordance with SEBI’s enhanced disclosure norms introduced in 2023 to promote transparency and timely communication with shareholders.

Investor Impact and Regulatory Transparency

Given that BlackBuck is a recently listed entity (Scrip Code: 544288), investor attention to regulatory and tax compliance remains high. The proactive disclosure of this order, despite its relatively low monetary value, reflects the company’s commitment to governance standards and investor communication.

The BlackBuck stock exchange disclosure on July 08, 2025, reassures stakeholders that:

• There is no promoter or related party involvement in this matter.

• The issue does not affect the company’s business operations or long-term outlook.

• The appeal process will be pursued legally and transparently.

This approach ensures that market participants remain fully informed and that the company maintains a clean and accountable image in the post-listing phase.

About BlackBuck

Zinka Logistics Solutions Limited, known commercially as BlackBuck, is one of India’s most prominent tech-driven logistics platforms. Known for digitising trucking operations and supply chain services, the company connects shippers with freight carriers using data analytics, AI, and mobile-first tools. The company has built a strong reputation in fleet management, route optimisation, and real-time freight visibility, serving both enterprise and SME clients across the country.

Since its listing, BlackBuck has aimed to follow stringent compliance norms, and the latest disclosure of the TDS order under Sections 201(1) and 201(1A) further reinforces its dedication to that mission.

Conclusion

The TDS demand order of ₹28.55 lakh received by BlackBuck from the Income Tax Department for financial year 2017-18, although not materially impactful, marks an important regulatory update. The company’s transparent disclosure, legal readiness to appeal, and assurance of non-materiality reinforce investor trust and compliance robustness.

As India’s corporate tax and financial reporting environment becomes increasingly scrutinized under SEBI’s evolving disclosure framework, BlackBuck’s approach to regulatory transparency sets a benchmark for other listed tech-driven enterprises. The BlackBuck appeal against TDS order will now proceed as per the legal timeline, and the market will be updated accordingly in future filings.

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