Rane Holdings Limited, a Chennai-based automotive component group company, has informed stock exchanges that its wholly owned subsidiary Rane Steering Systems Private Limited (RSSL) has received a penalty order from the Income Tax Department’s National Faceless Assessment Centre.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

According to the filing dated March 12, 2026, the penalty order was received on March 11, 2026.

Penalty Amount and Tax Demand

The Income Tax Department has imposed a penalty of ₹3.63 crore on Rane Steering Systems.

In addition to the penalty, the order also involves a tax demand of ₹6.74 crore.

The matter relates to Assessment Year 2015–16 (Financial Year 2014–15).

The penalty has been levied under Section 271(1)(c) of the Income Tax Act, 1961, which deals with penalties for concealment of income or furnishing inaccurate particulars of income.

Reason for the Penalty

The penalty order is connected to additions made during reassessment proceedings under Section 147 of the Income Tax Act.

Section 147 allows tax authorities to reopen and reassess income tax returns if they believe that income has escaped assessment.

In this case, the Assessment Unit of the National Faceless Assessment Centre issued the penalty after reviewing the reassessment proceedings related to the subsidiary.

Company Plans to Challenge the Order

Rane Holdings stated that Rane Steering Systems will contest the penalty order.

The subsidiary intends to file an appeal before the Commissioner of Income Tax (Appeals) within the timeline prescribed under the law.

The company also noted that the penalty order does not consider an important development in the case.

Earlier Tribunal Order in the Case

According to the company’s disclosure, the Income Tax Appellate Tribunal (ITAT) had earlier issued an order on March 4, 2026.

In that order, the tribunal had remanded the appeal back to the Commissioner of Income Tax (Appeals).

The tribunal directed the appellate authority to examine the merits of the case and adjudicate the matter again.

Rane Holdings said the penalty order was issued without considering this tribunal directive, which is one of the grounds for challenging the decision.

Regulatory Disclosure to Stock Exchanges

The disclosure was submitted to both BSE Limited and the National Stock Exchange (NSE).

The company provided details in accordance with SEBI’s Regulation 30 and the SEBI Master Circular dated January 30, 2026, which requires listed companies to disclose:

• Communication from regulatory authorities
• Penalties or sanctions imposed
• Potential financial implications

Such disclosures ensure transparency for investors and stakeholders regarding significant regulatory developments affecting listed entities or their subsidiaries.

Financial Implications

The total financial exposure mentioned in the communication includes:

• Penalty: ₹3.63 crore
• Tax Demand: ₹6.74 crore

However, since the company intends to contest the order through legal channels, the final financial impact will depend on the outcome of the appellate proceedings.

About Rane Holdings Limited

Rane Holdings Limited is part of the Rane Group, a well-known Indian automotive component manufacturer.

The group is involved in manufacturing products such as:

• Steering systems
• Automotive components
• Engine valves
• Lightweight casting solutions

Rane Steering Systems Private Limited, the subsidiary involved in the case, operates in the automotive steering components segment.

Litigation Status

The company clarified that it will regularly update stock exchanges regarding any developments in the litigation process.

Under SEBI disclosure rules, companies must provide updates on:

• Changes in litigation status
• Key developments in ongoing disputes
• Final settlement or resolution

These updates will continue until the litigation is concluded or the dispute is resolved.

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