Paradeep Phosphates Limited has announced a significant legal victory regarding an income tax dispute. The Assistant Commissioner of Income Tax has officially quashed a tax demand of ₹20.61 crore that was previously raised for the Assessment Year 2020-21. Furthermore, the company has been granted a refund of ₹20.57 crore, providing a positive resolution to this material litigation and strengthening the company’s financial standing.
Favorable Resolution of Tax Litigation
Paradeep Phosphates Limited has successfully resolved a material litigation concerning its tax obligations for the assessment year 2020-21. The dispute originated from an assessment order dated February 28, 2025, which had imposed an additional tax demand of ₹20.61 crore based on adjustments related to carry-forward losses and MAT credits from previous years.
Details of the Rectification Order
In response to the initial demand, the company filed an appeal on April 3, 2025. Simultaneously, the company pursued a rectification application under Section 154 of the Income-tax Act, 1961. This proactive approach led to a positive outcome, with a rectification order issued on May 20, 2026. The authorities have officially quashed the disputed ₹20.61 crore demand and approved a refund of ₹20.57 crore to the company.
Operational Impact
This development marks the conclusion of the ongoing proceedings for this specific assessment matter. By securing the quashing of the demand and receiving the refund, the company has effectively mitigated the financial risks associated with this litigation. The resolution underscores the company’s commitment to robust governance and effective management of its legal and financial affairs.
Source: BSE
