NSE/BSE Codes: BSE: 532764, NSE: GEECEE

Summary of Key Information:

Nature of Event / Disclosure:

Disclosure of a favorable order from the Income Tax Appellate Tribunal (ITAT) in an ongoing income tax litigation matter for Assessment Year 2017-18.

Involved Parties / Authorities:

  • Assessing Officer (Assistant Commissioner of Income Tax, Mumbai)
  • Commissioner of Income Tax (Appeals) [CIT(A)]
  • Income Tax Appellate Tribunal, Mumbai 'G' Bench (ITAT)

Date / Timeline of Event:

  • May 30, 2023: Reassessment order passed by the Assessing Officer.
  • April 27, 2026: CIT(A) order dismissing the company's appeal.
  • September 02, 2026: Date of hearing at the ITAT.
  • October 01, 2026: Date of the ITAT order.
  • October 09, 2026: Date the company received the ITAT order and made this disclosure.

Brief Description of Outcome / Dispute:

The dispute originated from a reassessment order that made an addition of ₹13.40 crore (₹13,39,79,699) to the company's income for AY 2017-18 by disallowing an exemption claimed on dividend income under Section 10(35) of the Income-tax Act, 1961, and adding it back under Section 68. The ITAT has allowed the company's appeal (ITA No. 5803/MUM/2026), quashing the original notice under Section 148 and the consequential reassessment order dated May 30, 2023. The tribunal ruled these actions were invalid and void ab initio because the approval for issuing the notice was not obtained from the specified authority as required under Section 151 of the Act.

Impact of Outcome:

Financial Impact:

Favourable. The addition of ₹13.40 crore to the company's income for AY 2017-18 will be removed. The exact financial impact will be determined once the Assessing Officer gives consequential effect to the ITAT order.

Operational / Business / Strategic Impact:

No material disclosures in this section.

Other Implications:

The outcome resolves a significant litigation matter for the company, potentially avoiding a substantial tax liability and related interest/penalties.

Next Steps / Required Actions:

The company will take necessary steps in accordance with the ITAT order, including following up with the Assessing Officer to ensure consequential effect is given to the order, formally removing the income addition.