The Supreme Court of India has dismissed the Income Tax authority’s appeals related to disallowances of General Licensing fees for the financial years 1996-1998, 1999-2001 and 2004-2008. The aggregate amount involved in these litigations was ₹101.21 Crore. This decision comes after the Income Tax authority initially contested the payments, claiming they were excessive and unreasonable, a matter previously decided in favor of the Company up to the High Court level.
Supreme Court Decision on Income Tax Appeals
The Supreme Court has dismissed the appeals filed by the Income Tax authority concerning the disallowance of General Licensing fees. These appeals pertained to financial years 1996-1998, 1999-2001, and 2004-2008. The order was dated January 13, 2026, and received by the Company on January 21, 2026.
Background of the Litigation
The Income Tax authority had contested payments of General Licensing fees, asserting they were excessive and unreasonable. Nestlé India appealed against these orders, and the matter was decided in favor of the Company up to the level of the Hon’ble Delhi High Court. Subsequently, the Income Tax authority filed appeals before the Supreme Court, which have now been dismissed.
Financial Impact
The aggregate amount involved in the above litigations was ₹101.21 Crore. With the dismissal of the appeals, the matter has been resolved in favor of Nestlé India.
Source: BSE
