(BSE: 500495 | NSE: ESCORTS) January 31, 2025
Escorts Kubota Limited has announced a favorable outcome in its ongoing tax litigation with the Income Tax Department. The Hon'ble High Court of Delhi, in an order dated January 27, 2025, dismissed the appeal filed by the Income Tax Department concerning the assessment year (AY) 2007-08.
Case Background
- The Income Tax Department had filed an appeal against an earlier ruling by the Income Tax Appellate Tribunal.
- The case pertained to tax assessments for AY 2007-08.
- The High Court’s dismissal was based on the tax impact being below the prescribed threshold, as outlined in CBDT Circular No. 9/2024 dated September 17, 2024.
Financial Implications
- The ruling reduces Escorts Kubota Limited’s tax liability by INR 0.08 crore.
- This decision provides regulatory clarity on the matter, potentially reducing legal uncertainties for the company.
Official Statement
The disclosure, made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was formally communicated to the BSE Limited and the National Stock Exchange of India Limited on January 31, 2025, at 09:50 A.M. IST, following the public availability of the court order.This ruling marks a positive legal development for Escorts Kubota Limited, eliminating a minor tax liability and reinforcing its financial standing.