More Stories

Informist, Tuesday, Sept. 29, 2026

NEW DELHI – Tata Steel Ltd. Tuesday said it received a favourable order from the Income Tax Appellate Tribunal in a tax dispute worth INR 4.27 billion for the financial year 2008-09 (Apr-Mar). This will result in a reduction in the aggregate tax exposure against the company to INR 12.59 billion from INR 16.86 billion, it said in an exchange filing. The company received the order dated Sept. 18 on Monday. 

The tax dispute relates to the company's claims of deduction for interest expenditure on loans borrowed and utilised to acquire Corus Group Plc for the period FY08 to FY15. The income tax authority had disallowed the company's claims for deduction, which resulted in the company's aggregate tax exposure for the entire period at INR 19.01 billion, it said. "The Company had, from time to time, filed appeals against these orders of the income tax authorities before the Income Tax Appellate Tribunal." 

Notably, the company, in February, received a favourable order from the income tax authority wherein the claim of deduction for interest expenditure was allowed, resulting in the tax exposure against the company being reduced to INR 16.86 billion from 19.01 billion. The latest order will further reduce the company's exposure to INR 12.59 billion once the assessing officer gives effect to the tribunal's order through a consequential separate order, it said. Subsequently, the company will make necessary adjustments in its contingent liability reported in the notes to its financial statements, as per the exchange filing. 

Meanwhile, for FY09, the Deputy Commissioner of Income Tax, Circle 2(3)(1), Mumbai, vide his order dated Jan. 10, 2014, had disallowed the claim of INR 8.14 billion towards deduction for interest expenditure under the relevant sections of the Income Tax Act, the company said. In February 2014, the company had filed an appeal against the order before the authority, and the matter was heard over multiple hearings, as per the exchange filing. 

The company believes that these orders passed by the authority will have a persuasive impact on co-related pending litigation on the same issue for the period FY10 to FY15, as mentioned above, the exchange filing said.

For the June quarter, Tata Steel reported a consolidated net profit of INR 23.18 billion on revenues of INR 607.94 billion. Tuesday, its shares closed nearly 1% higher at INR 188 on the National Stock Exchange.  End

Reported by Astha Oriel 

Edited by Himanshi Gupta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.