Syngene International has received an order dated February 6, 2026, giving effect to a ruling by the National Faceless Appeal Centre (NFAC) concerning the Assessment Year 2016-17. This order partially allowed the appeal filed by the Company. Consequently, the Assessing Officer has sanctioned a refund of ₹43,15,79,510, although the physical receipt of funds is still pending. The company anticipates this will result in a decrease in its contingent liability for that specific assessment year.
Receipt of Tax Litigation Order
Syngene International Limited officially informed the stock exchanges regarding a significant development in its ongoing tax litigation. On March 28, 2026, the Company received an order, dated February 6, 2026, which implements the decision previously made by the National Faceless Appeal Centre (NFAC) concerning Assessment Year (AY) 2016-17.
Background of Litigation
The matter traces back to an initial order passed by the Assessing Officer on December 27, 2018, which resulted in additions, disallowances, and a demand of Rs.72,33,63,020. The Company appealed this order.
- NFAC Ruling: The NFAC passed an order on January 08, 2026, which partially allowed the appeal filed by Syngene for AY 2016-17.
- High Court Reference: Separately, the Hon’ble High Court of Karnataka had allowed a Writ Petition filed by the Company regarding the adjustment of refunds related to AY 2010-11, AY 2011-12, and non-issue of refund for AY 2012-13, aggregating to Rs.48,90,84,008. An amount of Rs.22,69,95,456 from this aggregated figure had been adjusted against AY 2016-17.
Outcome and Financial Impact
Following these judicial pronouncements, an application was submitted by the Company. Pursuant to this, the Assessing Officer issued the order on February 6, 2026, giving effect to the orders mentioned above.
The key result is the sanctioning of a refund amounting to Rs.43,15,79,510, which includes applicable interest. However, this refund amount is yet to be physically received by the Company.
Syngene states that it believes this specific development related to AY 2016-17 may not have a material impact on the Company’s general financials or operations, but it anticipates a decrease in contingent liability relating to AY 2016-17.
Next Steps
The Company confirmed that no penalty, restriction, or sanction was imposed in this present order. Furthermore, the Company is currently in the process of analyzing the full order and will take appropriate subsequent action where necessary.
Source: BSE
