Faridabad, January 30, 2025 – Escorts Kubota Limited has announced that the Hon’ble High Court of Punjab & Haryana, Chandigarh, has dismissed an appeal filed by the Income Tax Department against its subsidiary, Escorts Benefit & Welfare Trust, for the assessment year 2016-17.
Key Litigation Outcome
- The Income Tax Department had appealed against an order passed by the Income Tax Appellate Tribunal regarding tax matters.
- The court’s decision, dated January 29, 2025, was based on the fact that the tax impact was below the threshold limit set by the relevant CBDT circular.
- The event was officially recorded on January 30, 2025, at 02:40 PM (IST) upon the availability of the court order on the official portal.
Financial Implications
- As a result of the court ruling, the tax liability of Escorts Kubota Limited has been reduced by ₹2.03 crore, including interest.
Company Statement
The company has formally communicated this development to both BSE and NSE, complying with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Escorts Kubota assured stakeholders that this litigation outcome will have a positive financial impact by eliminating the potential tax liability.Looking Ahead
This decision provides clarity on the company’s tax obligations and strengthens its financial position. Investors can expect a stable outlook as the company continues to navigate regulatory challenges effectively.For further details, stakeholders can refer to the official communication issued by Escorts Kubota Limited.