Nandan Denim Limited (NDL) announced on 31 May 2025 that it has received an order from the Income Tax Department.

• The order, issued by the Commissioner of Income Tax, Ahmedabad, under Section 144C(3) r.w.s. 143(3) r.w.s. 147 of the Income Tax Act, 1961, pertains to Assessment Year 2019-20.
• The order was dated 28 May 2025 and received by the company on 31 May 2025.
• It disallows income of ₹ 21,80,29,672, which includes ₹ 12,28,04,122 related to Section 80IA and ₹ 9,52,25,550 for other matters.
• A demand of ₹ 21,07,00,161 has been raised for the Assessment Year 2019-20.
• The company intends to file an appeal before the Appellate Authority and expresses full confidence that the demand will be set aside.
• Nandan Denim Limited highlighted that matters related to Section 80IA and interest subsidy have previously been ruled in the company's favor by the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal (ITAT) in earlier years.
• The company stated that the assessment order will have no material impact on its financial, operational, or other activities.