Vipul Badani Appeals Rs 21.69 Lakh Tax Reassessment Order

Sep 19, 2026•3 min read

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Vipul Badani has appealed a Rs 21.69 lakh assessment year, or AY, 2019-20 reassessment to the Income-tax Appellate Tribunal after a May 12, 2026 appellate order, while a separate AY 2014-15 reassessment alleging Rs 1.24 crore of escaped income remains unresolved. The offer document reports no criminal or securities-law proceedings against Vipul Badani.

Why is Vipul Badani's tax reassessment appeal pending?

Vipul Badani's AY 2019-20 reassessment remains pending because he appealed to the Income-tax Appellate Tribunal on July 20, 2026, after the Commissioner of Income-tax (Appeals) issued an order on May 12, 2026. The proceeding began through notices under Sections 148A(b) and 148 of the Income-tax Act, 1961, over alleged escaped income of Rs 13.76 lakh connected with a purported fictitious loan from Rati Diamonds Pvt. Ltd.

The offer document records Rs 21.69 lakh as the amount involved in the AY 2019-20 proceeding. It separately says that a Rs 18.70 lakh demand, plus accrued interest, was reflected on the Income Tax Portal under Section 147 on March 30, 2025. The disclosure does not reconcile the Rs 21.69 lakh proceeding amount with the Rs 18.70 lakh portal demand.

Vipul Badani initially filed Form 35 under Section 246A before the Commissioner of Income-tax (Appeals), then filed the July 20, 2026 tribunal appeal after that authority's May 12, 2026 order. Vipul Badani has also submitted a rectification application to the Commissioner of Income-tax (Appeals), and the disclosure identifies the matter as pending. It does not report a final decision on either the reassessment or the rectification request.

The AY 2019-20 matter also includes consequential penalty proceedings under Section 271AAC(1), relating to income proposed to be taxed under Section 115BBE. The disclosure says penalty proceedings were initiated, not that a penalty was imposed. A final outcome therefore depends on the tribunal appeal and the pending rectification application.

What does the Rs 1.24 crore accommodation-entry reassessment involve?

Vipul Badani also faces an AY 2014-15 reassessment based on alleged escaped income of Rs 1.24 crore. The information was received from the Investigation Wing and concerns purported accommodation entries described as alleged bogus loans, purchases or sales involving Shri Shrirjil Pvt. Vora, identified in the disclosure as S. Vora & Associates, during FY 2013-14.

The original AY 2014-15 notice under Section 148 was dated June 26, 2021. Under the Supreme Court's May 4, 2022 order in Civil Appeal No. 3005/2022, the notice is deemed to be a show-cause notice under Section 148A(b). That procedural position differs from the AY 2019-20 matter, where the disclosure records notices under both Sections 148A(b) and 148.

The Rs 1.24 crore figure is alleged escaped income, rather than a disclosed tax demand, payment or penalty. The tax-proceedings table leaves the amount involved blank for AY 2014-15, while listing Rs 21.69 lakh for AY 2019-20. The two cases therefore cannot be combined as quantified tax liabilities from the information provided.

The disclosure gives no assessment order, demand amount, appeal filing or disposal date for AY 2014-15. FY 2013-14 is identified as the transaction period relevant to that assessment year, but no further procedural update is reported. The continuing reassessment is thus distinct from the appealed AY 2019-20 proceeding.

How do Vipul Badani's cases compare with company litigation?

Vipul Badani's two personal income-tax matters are disclosed separately from the company's tax proceedings, which have a quantifiable aggregate of Rs 1.1672 crore across six cases. The company's table includes an Income Tax Act demand of Rs 0.15 lakh and several matters under the Tamil Nadu Goods and Services Tax, or GST, framework.

The largest quantified company item is a Rs 98.73 lakh GST show-cause notice and demand proceeding for FY 2022-23, for which the company filed a reply dated May 29, 2026 and reported pending adjudication. A separate Rs 0.15 lakh direct-tax demand was raised under Section 168 on March 27, 2021 and paid, although the company said it remained visible on the Income Tax Portal. Neither company item is stated to concern Vipul Badani personally.

The offer document states that there were no criminal proceedings against Vipul Badani or the other promoters and directors as of its date. It also states that no Securities and Exchange Board of India, or SEBI, or stock-exchange action was outstanding against the promoter and that no such penalties had been imposed in the preceding five financial years. Those disclosures classify the reported matters as tax proceedings, not as criminal or securities-law cases.

Why were the tax proceedings included in the offer document?

The board adopted its material-litigation criteria on January 5, 2026, using the lower of stated financial thresholds or a proceeding that could materially affect business, operations, prospects or reputation. The disclosed thresholds included Rs 1.5378 crore, equal to 2% of turnover, Rs 49.47 lakh, equal to 2% of net worth, and Rs 32.68 lakh, equal to 5% of the average absolute profit or loss after tax for the preceding three restated financial years.

Tax claims are separately presented for the company and for promoters and directors, with amounts shown only to the extent quantifiable. That approach explains the difference between the two entries for Vipul Badani: AY 2019-20 has a quantified Rs 21.69 lakh amount, while AY 2014-15 describes alleged escaped income of Rs 1.24 crore without assigning a quantified case amount. The disclosure does not state a timetable for either matter's completion.

Conclusion

Vipul Badani has two disclosed reassessment matters in different stages. The AY 2019-20 proceeding, involving Rs 21.69 lakh, has moved to the Income-tax Appellate Tribunal following the May 12, 2026 appellate order, whereas the AY 2014-15 matter concerns an allegation of Rs 1.24 crore in escaped income without a disclosed demand or disposal.

The next reported developments to watch are the outcome of the July 20, 2026 tribunal appeal, the pending rectification application before the Commissioner of Income-tax (Appeals), and any subsequent assessment or demand in AY 2014-15. The offer document leaves all three points unresolved and provides no stated schedule for their conclusion.

Frequently Asked Questions

Vipul Badani filed an appeal before the Income-tax Appellate Tribunal on July 20, 2026 in the AY 2019-20 reassessment matter. The appeal followed an order dated May 12, 2026 by the Commissioner of Income-tax (Appeals), and a rectification application is also pending before that authority.

The offer document states that Rs 21.69 lakh is involved in Vipul Badani's AY 2019-20 proceeding. It separately records a Rs 18.70 lakh demand plus accrued interest on the Income Tax Portal as of March 30, 2025, without reconciling the two amounts.

The AY 2014-15 reassessment alleges Rs 1.24 crore of escaped income from purported accommodation entries during FY 2013-14. The disclosure describes the entries as alleged bogus loans, purchases or sales involving Shri Shrirjil Pvt. Vora, identified as S. Vora & Associates.

The offer document states that no criminal proceedings were pending against Vipul Badani or other promoters and directors as of its date. It also reports no outstanding SEBI or stock-exchange actions against the promoter and no penalties from those bodies during the preceding five financial years.

No disclosed tax demand is attached to the Rs 1.24 crore figure. The offer document describes it as alleged escaped income in the AY 2014-15 reassessment and leaves the quantifiable amount involved blank in the tax-proceedings table.