This is a regulatory disclosure filed with BSE Limited under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The filing provides a final update on a long-pending income tax litigation matter for Assessment Year 2014-15.
The company had previously challenged reassessment proceedings which included an addition of ₹12,15,00,000 (Twelve Crore Fifteen Lakh) made under Section 68 of the Income-tax Act, 1961, and a consequential penalty of ₹4,12,97,850 (Four Crore Twelve Lakh Ninety-Seven Thousand Eight Hundred Fifty) levied under Section 271(1)(c) of the Act.
The company's appeals before the Commissioner of Income-tax (Appeals), National Faceless Assessment Centre, had been dismissed/partly allowed, and the penalty appeal had been dismissed.
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench 'B', has now pronounced a common order dated August 27, 2026 (received by the company on November 07, 2026) in:
- ITA No. 624/Mum/2024 (quantum appeal)
- ITA No. 1929/Mum/2024 (penalty appeal)
for Assessment Year 2014-15.
The Tribunal allowed both appeals filed by the company. In the quantum appeal (ITA No. 624/Mum/2024), the Tribunal held that the addition of ₹12,15,00,000 under Section 68 was not sustainable and directed that it be deleted. Consequently, in the penalty appeal (ITA No. 1929/Mum/2024), the Tribunal held that the penalty of ₹4,12,97,850 under Section 271(1)(c) was unsustainable and directed that it be deleted.
The proceedings have now been conclusively decided in favor of the company by the Tribunal, resulting in the complete deletion of both the tax addition and the penalty. The disclosure is made in compliance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated January 30, 2026.
The letter is signed by Kunjal S Desai, Company Secretary (FCS: 14330), on behalf of The Baroda Rayon Corporation Limited.