Nuvoco Vistas Corp announced that the Principal Commissioner of Income Tax (PCIT) has dropped the proceedings against the show cause notice for FY 2019-20. The order, dated October 23, 2025, was issued after the PCIT considered the company’s submissions and evidences. This concludes the matter without any tax outflow for Nuvoco Vistas Corp.
Favorable Outcome in Income Tax Matter
Nuvoco Vistas Corp has received a favorable order from the Principal Commissioner of Income Tax (PCIT) regarding the proceedings initiated under section 263 of the Income Tax Act for FY 2019-20. The PCIT, Mumbai-6, issued the order on October 23, 2025, effectively dropping the proceedings.
Details of the Dropped Proceedings
The show cause notice (SCN) had previously proposed disallowing deductions claimed on interest paid on Non-Convertible Debentures (NCDs). It also related to the transfer of NCDs liability of the cement undertaking as per the NCLT order of January 2020, during the merger with the Company in February 2020. The approximate tax impact was Rs. 352.55 crores for FY 2019-20.
Basis for Dropping the Proceedings
The PCIT reviewed the detailed submissions and evidences provided by Nuvoco Vistas Corp. Based on judicial precedents and the merits of the case, the proceedings have been dropped in entirety under section 263 of the Income Tax Act, 1961.
Financial Impact
With the proceedings dropped, there will be no tax outflow related to this matter for Nuvoco Vistas Corp. All issues raised in the SCN have been resolved.
Source: BSE
