Pind Hospitality Limited discloses 21 direct-tax cases: Rs 2.965 crore

Pind Hospitality Limited, referred to as Pind Hospitality, discloses 21 direct-tax cases involving Rs 2.965 crore across the company and Find Punjab, its partnership firm. Pind Hospitality reports seven cases involving Rs 1.6869 crore and Find Punjab reports 14 involving Rs 1.2781 crore, while both report nil criminal, regulatory and material civil proceedings.

What direct-tax cases does Pind Hospitality disclose?

Pind Hospitality discloses seven direct-tax cases with an aggregate amount involved, to the extent ascertainable, of Rs 1.6869 crore. Its litigation table records nil indirect-tax cases, meaning direct tax represents all tax proceedings disclosed for the company. The prospectus states that litigation information is current as of the date of the Red Herring Prospectus unless a disclosure states otherwise.

The Rs 1.6869 crore amount is an aggregate amount involved in the proceedings, not a statement that the full amount has become payable or that a final decision has been made. The accompanying note identifies an income-tax demand under Section 143(1)(a) of the Income-tax Act for assessment year, or AY, 2025, a separate demand under the same provision for AY 2024, and a demand under Section 154 for AY 2023. Section 143(1)(a) and Section 154 are cited in the disclosure, but the prospectus does not provide outcomes, payment status or appeal status for these matters.

Pind Hospitality also lists Tax Deducted at Source, or TDS, TRACES demands for four financial years from FY 2021-22 through FY 2024-25. The disclosed TDS items include Rs 21.19 lakh for FY 2024-25, Rs 4.03 lakh for FY 2023-24, Rs 45,190 for FY 2022-23 and Rs 6,040 for FY 2021-22. The listing indicates that the company’s seven reported cases include both income-tax demands and TDS-related demands over multiple assessment and financial years.

How are Pind Hospitality's direct-tax cases split with Find Punjab?

Find Punjab accounts for 14 of the combined 21 direct-tax cases, or two-thirds of the reported case count, with an aggregate amount involved of Rs 1.2781 crore. Like Pind Hospitality, Find Punjab reports nil indirect-tax cases. The prospectus identifies Find Punjab as Pind Hospitality’s partnership firm and presents its litigation in a separate section.

Find Punjab’s note lists income-tax demands spanning AY 2018 through AY 2025, along with TDS TRACES demands from FY 2018-19 through FY 2025-26. Among the specifically stated income-tax items are a Rs 67.78 lakh demand under Section 143(1)(a) for AY 2025, a Rs 19.43 lakh demand under that provision for AY 2021, a Rs 6.03 lakh demand under Section 143(4) for AY 2018 and a Rs 5.69 lakh demand under Section 154 for AY 2019.

The combined amount of Rs 2.965 crore is the sum of Pind Hospitality’s Rs 1.6869 crore and Find Punjab’s Rs 1.2781 crore aggregate disclosures. That split means the company represents about 57% of the combined amount, while Find Punjab represents about 43%. The prospectus provides the aggregate amounts and the specified demands, but does not state whether any of the 21 matters have been stayed, paid, settled, appealed or resolved.

How do Pind Hospitality's direct-tax cases compare with its materiality policy?

Pind Hospitality’s Rs 2.965 crore direct-tax case total is numerically Rs 2.8475 crore above its Rs 11.75 lakh monetary benchmark for material litigation, but tax claims are excluded from that policy test. The board adopted the materiality policy on September 9, 2026. The policy separately requires disclosure of direct- and indirect-tax claims rather than testing them as material litigation under the monetary benchmark.

The Rs 11.75 lakh figure is the lowest of three calculations based on Pind Hospitality’s last annual restated financial statements: 2% of turnover at Rs 48.90 lakh, 2% of net worth at Rs 29.05 lakh, and 5% of the average absolute profit or loss after tax for the previous three annual restated financial statements at Rs 11.75 lakh. The policy uses the lowest of these measures as its threshold for litigation within its scope.

The policy also allows similar cases to be considered together where the decision in one case could affect similar cases and their aggregate amount exceeds the threshold. However, the prospectus expressly excludes criminal proceedings, actions by statutory or regulatory authorities, and direct- and indirect-tax claims from this material-litigation framework. Therefore, the numerical comparison does not mean the Rs 2.965 crore tax total is classified as material litigation.

What other litigation and creditor disclosures does Pind Hospitality make?

Pind Hospitality reports nil criminal proceedings, nil outstanding actions by regulatory and statutory authorities, and nil material civil proceedings filed against it. It also reports nil criminal proceedings and nil material civil proceedings filed by it. Find Punjab reports the same nil disclosures in those categories, apart from its 14 direct-tax cases involving Rs 1.2781 crore.

The prospectus separately reports nine direct-tax cases involving Rs 26.68 lakh for Pind Hospitality’s promoters. Directors other than promoters report nil direct-tax cases, while key managerial personnel and senior managerial personnel other than directors and promoters report one direct-tax case involving Rs 798. These 10 cases are separate from the 21 matters attributed to Pind Hospitality and Find Punjab.

Pind Hospitality also reports trade payables of Rs 1.3054 crore as at March 31, 2026, of which six material creditors accounted for Rs 94.75 lakh and 28 other creditors accounted for Rs 35.79 lakh. Under the creditor policy adopted on September 9, 2026, a creditor was material where dues exceeded 5% of trade payables, or Rs 6.53 lakh. The creditor disclosure is distinct from tax litigation and does not alter the reported Rs 2.965 crore tax-case amount.

Conclusion

Pind Hospitality’s litigation disclosure separates tax proceedings from criminal, regulatory and material civil litigation. The company and Find Punjab together report 21 direct-tax cases involving Rs 2.965 crore, with Pind Hospitality accounting for Rs 1.6869 crore and Find Punjab for Rs 1.2781 crore; both entities report nil proceedings in the other principal litigation categories presented.

The next disclosure to watch is the status of the income-tax and TDS demands, particularly the AY 2025 matters listed for both Pind Hospitality and Find Punjab, because the prospectus gives no payment, appeal, settlement or outcome information. Pind Hospitality also states that, other than developments disclosed elsewhere in the prospectus, no circumstances had arisen after March 31, 2026 that materially and adversely affected, or were likely to affect, operations, profitability, consolidated assets or the ability to pay liabilities within the following 12 months.