ICICI Lombard General Insurance Company Limited has reported an erroneous adjustment of its tax refund amounting to ₹96,96,37,540 for AY 2025-26. This refund was incorrectly offset against a demand arising from a reassessment order for AY 2015-16, despite earlier favorable orders in the company’s favor. ICICI Lombard plans to pursue appropriate legal actions to rectify this adjustment.
Tax Refund Adjustment Disputed
ICICI Lombard General Insurance Company Limited has raised concerns over an alleged erroneous adjustment of its tax refund for Assessment Year (AY) 2025-26. The company received an intimation on August 7, 2026, from the Centralised Processing Center, Income Tax Department, Bengaluru, stating that a refund of ₹96,96,37,540 has been adjusted against a demand. This demand purportedly arises from a reassessment order dated May 29, 2023, under Section 147 of the Income Tax Act, 1961, for AY 2015-16.
Background and Company’s Stance
The company highlights that this adjustment is considered erroneous as it disregards prior favorable orders. Previously, the Commissioner of Income Tax (Appeals) (CIT(A)) had passed a favorable order against the reassessment order for AY 2012-13 and AY 2015-16, and for the assessment order for AY 2016-17 and AY 2017-18. Subsequently, the Income Tax Department filed an appeal with the Income-tax Appellate Tribunal (ITAT), which issued a combined order for AY 2012-13, AY 2015-16, AY 2016-17, and AY 2017-18, partly allowing the appeal.
Next Steps
ICICI Lombard states that there are no material financial implications at this stage. However, the company intends to pursue appropriate legal actions, which may include filing appeals or writ petitions, to address this situation and ensure the correct application of tax laws and prior rulings.
Source: BSE
