Nuvoco Vistas Corp. Ltd. announced that the Principal Commissioner of Income Tax (PCIT) has dropped proceedings related to the Income Tax Act for the financial year 2020-21. The proceedings were initiated under section 263 following a show cause notice, but the PCIT has now withdrawn the notice after considering submissions made by the company. This decision results in no tax outflow for Nuvoco Vistas.
Favorable Outcome in Tax Matter
Nuvoco Vistas has received an order from the Principal Commissioner of Income Tax, Mumbai-6 (PCIT), resolving a dispute related to a show cause notice for the financial year 2020-21. The order, dated October 23, 2025, confirms that the PCIT is dropping the proceedings under section 263 of the Income Tax Act.
Background of the Dispute
The initial show cause notice (SCN) had questioned the deduction claimed on interest paid on Non-Convertible Debentures (NCDs). The approximate tax impact related to this matter was estimated at ₹99.97 crores for the fiscal year 2020-21.
PCIT’s Decision and Impact
After a thorough review of the company’s submissions and supporting documents, the PCIT decided to drop the proceedings in their entirety. This favorable outcome means that all issues raised in the SCN have been resolved, and there will be no resulting tax outflow for Nuvoco Vistas. The company considers this a positive development that removes a potential financial liability.
Source: BSE
